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 ANGEfX-,
 
 ARBITRATION 
 
 BETWEEN 
 
 CAPITAL AND LABOR, 
 
 A HISTORY AND AN ARGUMENT; 
 
 DANIEL J. RYAN. 
 
 "If there be those who would array Labor against Capital, I am not of 
 them, nor with them. If there be those who regard the interests of Labor 
 and of Capital as naturally and properly antagonistic, I do not agree with 
 them." — Horace Greeley. 
 
 COLUMBUS, O. : 
 
 1885.
 
 Entered according to act of Congress, in the year 1885, by 
 
 Daniel J. Ryan, 
 
 In the Office of Librarian of Congress, at Washington. 
 
 Preas of Nitschke Bros,, 
 Columbus. O.
 
 ^3 
 SH3I 
 
 TO 
 
 JOSEPH D. WEEKS, 
 
 OF PITTSBURGH.
 
 PREFACE. 
 
 THIS volume was written during the spare 
 hours of a legislative session. It is not 
 presented to the public as a work of 
 literary excellence or of brilliant originality. 
 The principles advocated herein are neither new 
 nor untried. 
 
 It is my desire to offer a plain statement, in a 
 historical and argumentative way, of the value 
 and necessity of the peace principle of arbitra- 
 tion in settling disputes between capital and 
 labor. 
 
 Events are daily transpiring which are crowd- 
 ing to the front the importance of amicably 
 adjusting the controversies of workingmen and 
 their employers. Their dissensions are operating 
 injustice and damage to both sides and to society 
 at large. There is danger in their occurrence
 
 vi. preface:. 
 
 and continuance, and the conservative friends 
 of social order see in these conflicts a subject 
 worth}' of the gravest consideration. What shall 
 be done, is a great and pressing problem. It is a 
 matter wliich affects more living persons than 
 an\' othef question with which our race has to 
 deal. It is one of the broadest humanity. It is 
 not simph' a question that deals with dollars, 
 wages, strikes, and riots; it deals with human 
 wants, sufferings, affections, and grief. Centuries 
 of strife have failed to solve it. A few recent 
 years of peaceful methods, such as described in 
 these pages, have accomplished more than all the 
 past. 
 
 In the preparation of this volume, I have 
 experienced no little difficulty from the paucit}^ 
 of material in American literature, for informa- 
 tion upon the subject which it treats. With the 
 exception of the valuable Report on Arbitration 
 and Conciliation in Enc/land, by Mr. Joseph D. 
 Weeks, tliere has been nothing complete published 
 in this country. Tlie principle and practice of 
 arbitration in trade disputes has received much 
 attention from tlie social ('('()iiomists, statesmen, 
 Wdikingmen, and capitalists of England. Hence,
 
 PREFACE. Vll. 
 
 the reader will find that almost all of the evi- 
 dence as to its operations and success come from 
 English sources. 
 
 I am under deep obligations to Mr. Weeks on 
 account of a free recourse to his report, and for 
 personal views obtained from him, and I am also 
 indebted to Ex-Senator Wallace, of Clearfield, 
 Pa., for favors connected herewith. 
 
 I have found in my investigations the follow- 
 ing works of vast benefit in properly studying 
 the question of voluntary arbitration, and I 
 recommend them to those who desire to examine 
 this subject: The State in Relation to Labor, by 
 W. Stanley Jevons; The Question of Labor and 
 Cajyital, by John B. Jervis; Oyi Work and Wages, 
 by Sir Thomas Brassy; On Labor, by W. T. 
 Thornton; Trades Unions, by William Trant; The 
 History and Development of Guilds, and the Origin 
 of Trades Unions, by L. Brentano; Tlieory of 
 Political Economy, by W. Stanley Jevons; Eco- 
 nomic Position of the British Laborer, by Henr}^ 
 Fawcett; The Social Law of Labor, by William B. 
 Weeden ; Reports of the Condition of the Industrial 
 Classes in Foreign Countries, London, bSTO; Con- 
 flicts of Labor and Capital, by George Howell;
 
 Vlll. PREFACE. 
 
 Reports of the Bureau of Labor Statistics, for the 
 States of Oliio, Pennsylvania, and Massachusetts, 
 and Report of Committee on Trades Societies, in the 
 Proceedings of the National Association for the 
 Promotion of Social Science, London, 1860. 
 
 With these words, this work is submitted to 
 the consideration of an appreciative public. 
 
 DANIEL J. RYAN. 
 Port'' mouth, 0., April, 1885.
 
 CONTENTS. 
 
 CHAPTERS — 
 
 I. The Failure and Fallacy of Strikes 1 
 
 II. Voluntary Arbitration, Its Methods and Operations. 18 
 
 III. Arbitration in France and Belgium; The " Conseils 
 
 des Prud'hommes ;" The Arbitration Act of Austria, 38 
 
 IV. Anthony John Mundella, the Founder of English 
 
 Arbitration 49 
 
 V. Rise and Development of English Industrial Arbitra- 
 
 tion 56 
 
 VI. Voluntary Arbitration in the United States 77 
 
 VII. Trades Unions and Arbitration 91 
 
 APPENDIX — 
 
 I. Arbitration in the English Trades 101 
 
 II. Specimen of an American Arbitration Board 105 
 
 III. A Bundle of Letters on the Subject 112 
 
 IV. The Ohio Arbitration Act 120
 
 CHAPTER I. 
 
 THE FAILURE AND FALLACY OF STRIKES. 
 
 THE protracted and bitter struggles between 
 workmen and employers known as strikes, 
 form a subject worthy of special consider- 
 ation in treating upon the matter of arbitration. 
 Their failure and inefficiency in producing profit- 
 able results present an impressive lesson to labor, 
 as well as a powerful argument for an appeal to 
 the methods of peace and law, in settling in- 
 dustrial difficulties. A writer, whose official and 
 personal opportunities have given him the right 
 to speak with authority on this subject, has this 
 to say concerning it: 
 
 "How do strikes originate? The history of 
 one in its general features is the history of all. 
 A number of men working for a firm or company, 
 through their daily conversation become imbued 
 with the belief that they should have an advance 
 of wages; a meeting is called for some evening,
 
 2 ARBITRATION. 
 
 the matter is discussed, and finally a committee 
 is instructed to respectfully demand of the em- 
 ployers an advance of wages. The demand is 
 refused or ignored, and no attempt at communi- 
 cation with the men is made by the employer. 
 The men become morose and sullen, another 
 meeting is held, and a strike is resolved upon. 
 The men strike, the works are closed for a month 
 or more, one of the parties weakens, a request for 
 a conference ensues, the difficulty is adjusted, and 
 the meii return to work. It matters not which 
 side has been defeated; ill feeling and a desire for 
 another test of endurance has obtained a foothold, 
 and the war continues until either the employes 
 are all dead or scattered, or the employers with- 
 draw from the business. If a demand comes 
 from the employers for a reduction of wages, the 
 method of proceeding is practically the same, 
 with the same results."* 
 
 A strike never proved the right or wrong 
 of any labor question. In isolated instances it 
 may have resulted in some particular good, but 
 these cases are rare exceptions in the history 
 of strikes. In no case has a strike left the 
 workingman in the same prosperous condition in 
 wliicli it found him. It leaves him out of money 
 
 •Second Annual Report of the Bureau of Labor Statistics of Ohio. 
 
 — //. J. Walla, 1878.
 
 ARBITRATION. 6 
 
 and out of work. It always turns Labor into a 
 mendicant, and frequently into a criminal; it 
 arouses in Capital feelings of cruel resentment, 
 and transforms it into a heartless oppressor. 
 The motives, as well as the origin of these strikes, 
 are often simple and useless. One of the most 
 extensive industrial territories in the United 
 States is the Hocking Valley Coal region of 
 Ohio. In no other collection of wageworkers in 
 this country have strikes been more frequent or 
 more damaging. Yet one who has examined by 
 personal association, together with experience 
 coming only from a practical miner, the condi- 
 tions of employment there, says that " the 
 majority of these labor troubles originate in 
 almost nothing."* There must be, however, ex- 
 ceptions to this statement. The terrible struggle 
 which has been going on in that region for the 
 past year certainly cannot be said to have origi- 
 nated '' in almost nothing." The protest of the 
 miners against a reduction was based on much that 
 was just and fair. Nevertheless, the differences 
 on this point between the operators and miners 
 could have been settled in its first stages by honest 
 and frank arbitration. The failure of calm, can- 
 did discussion between operator and emplo3^e 
 frequently leads to dissensions and ill-feelings, 
 
 *Aimual Report of Inspector of Mines of Ohio.— Andrew Roy, IfiSl.
 
 4 ARBITRATION. 
 
 which usually terminate in a strike. Further, on 
 this same matter, he says, " both parties acknowl- 
 edge that the price of mining should be reduced 
 in the spring and raised in the fall. Yet the 
 miners scarcely ever accede to a reduction with- 
 out a strike, and the operators never allow an 
 advance unless compelled to do so by a threatened 
 strike." The bitter experiences of employers 
 and employes seem to lessen in but a small degree 
 this annual recurrence to the methods of bar- 
 barism to settle their differences. The conflict 
 goes on, bringing disaster and ruin to the opera- 
 tors, and idleness and starvation to the miners. 
 Another innocent victim of these struggles is 
 the workingman of the cities. The price of coal 
 during strikes becomes high, or at least they are 
 sometimes the pretext for high prices, and the 
 article of home use as necessary as the bread on 
 the table is purchasable only by paying the price 
 of a luxury. It is no blow to the wealthy; their 
 fires always burn, even though their coal comes 
 from distant districts. So while the miner in his 
 struggle entails suffering and want upon his own 
 family, his influence for increasing suffering 
 extends to the crowded tenements of the city and 
 to the home of the mechanic far distant. The 
 unjust demands of the operator have the same 
 result.
 
 ARBITRATION. O 
 
 The moral influence of strikes is depressive. 
 Idleness is most conducive to evil; and it is the 
 worst enemy of industrial progress. A victim of 
 involuntary idleness, as the workingman usually 
 is in a strike, is a pitiable spectacle. Willing and 
 able to labor, but controlled perhaps by some 
 external agency which he must obey. No good 
 can come to the laboring classes from such a 
 source; it brings bitterness and defeat even when 
 their controversy is successful. 
 
 Every strike is a pecuniary disaster to capital 
 and labor. The misled wagemen are losers even 
 when the imaginary victory is theirs. The annals 
 of strikes are a series of foolish losing struggles 
 for labor. A strike for a wage advance of ten 
 per cent., if kept up for one month, and if the 
 parties are successful, is no pecuniary advance- 
 ment. It will require that striking labor ten 
 months of uninterrupted work to earn back the 
 money lost by the strike. Who is ahead in the 
 contest? If the strike lasted thirty days, and 
 the advance gained was only five per cent., the 
 laborer would have to work one year and eight 
 months to earn back what he lost during the 
 strike! Is there any money to labor in striking? 
 
 A review of the history of the protests of 
 labor against the aggressions of capital will be 
 interesting in demonstrating the failure of strikes.
 
 G ARBITRATION. 
 
 The path of Englisli industry is strewn with 
 tombstones marking ruinous and ineffective 
 struggles of labor. The earliest wide spread and 
 long continued strike of Elnglish workmen was 
 that of the Lancashire cotton spinners, which 
 occurred in ISIO. In that year the spinners in 
 the mills of Manchester, Stockport, Macclesfield, 
 Staleysbridge, Ashton, Hyde, and as far north as 
 Preston, left their work simultaneously. Thirty 
 thousand persons were thrown out of employ- 
 ment. The strike, which was for an advance in 
 wages, continued four months. It was four 
 months of misery, lawlessness, and destitution to 
 the participants. The hard-earned savings of 
 years were consumed in endeavoring to win the 
 contest. The advance was not obtained — the 
 desired })oint was an increase of fifty per cent.; 
 failure was the result. 'The loss was enormous, 
 but out of the pocket of the laborer. The spin- 
 ners of Manchester struck in 1829; they lost a 
 million and a quarter of dollars before it was 
 ended. (Jain? Nothing. In 1830 the spinners at 
 Ashton and Staleysbridge lost the same amount 
 in wages by a strike. In 1833 the builders of 
 Manchester inaugurated a famous strike. They 
 had nothing to show for their struggle but a loss 
 of $300,(J()() in wages. The spinners of Preston 
 lost |3()(),()(M) in 1880. In 1854 seventeen thou-
 
 ARBITRATION. 7 
 
 sand spinners in the same place struck for thirty- 
 six weeks, and they lost $2,100,000 in wages. 
 The iron workers of England lost in 1854 $215, 
 000 in the same way. The dear price of strikes 
 is not always paid by labor; capital suffers as 
 well. The Belfast linen operators in 1875 lost 
 $1,000,000 by one season's strike. This treats of 
 but a few instances. In the pottery strikes of 
 Staffordshire of 1834 and 1836, the loss to both 
 workmen and manufacturers was $943,050 in the 
 latter year, and $250,000 to the workmen alone 
 in the former. 
 
 The bread winners of America never made a 
 dollar by striking. When every such transaction 
 is put upon the trial sheet of investigation, and 
 subjected to cool calculation, the figures will be 
 on the debit side every time. The great railroad 
 strike of 1877 was founded on the just demands 
 of employes who, as a matter of humanity, were 
 entitled to increased wages. It was simply a 
 labor rebellion against the aggregated and op- 
 pressive railroad capital of the country. But 
 what did it amount to? Nothing. Lives lost, 
 property burned, public peace disturbed, and 
 every day was a day lost in bread and butter to 
 the strikers. The loss to labor was millions, to 
 capital, tens of millions. It settled no dispute; 
 save to no man work.
 
 ^ ARBITRATION. 
 
 In 188(1 the Bureau of Labor Statistics of 
 Massachusetts made a thorough report of the 
 result of 159 strikes in this country. The report 
 classifies the strikes and their causes as follows: 
 to secure better wages, 118; to secure shorter 
 day.'=', 24; to enforce union rules, 9; resisting 
 employers' rules, 5; against introduction of 
 machinery, 3. The report shows the result to 
 have been as follows: unsuccessful, 109; success- 
 ful, 18; compromised, 1(3; partly successful, 6; 
 result unknown, 9; contest then pending, 1. In 
 the various Fall River strikes in that State, the 
 enormous sum of $1,400,000 has been lost in 
 wages by the voluntary idleness of the operatives. 
 And it is stated that "in more than sixty-eight 
 \)CY cent, of them, loss in wages, varying with the 
 extent and duration of the strike, has been sub- 
 mitted to without any material benefit accruing 
 to offset it.'"* 
 
 The strike of the Amalgamated Association 
 of Iron and Steel Workers of Cincinnati and 
 vicinity in 1881 was a five months' struggle 
 which cost the strikers $500,000 in wages and 
 injured the trade of Cincinnati to the extent 
 of a million and a half of dollars. In the end 
 l»otli i)arties got together, talked it all over, made 
 concessions to each other, and an agreement was 
 
 • Keport of the Bureau of I.iibor Statistics.— ISSO, pages r,5-C8.
 
 ARBITRATION. 9 
 
 reached. This was practically arbitration. Why 
 not do that at first? 
 
 The strike of the Brotherhood of Telegraphers 
 throughout the United States and Canada com- 
 menced July 19, 1883. It lasted just thirty days. 
 The demands of the strikers were for shorter 
 hours of labor and an increase of pay. They 
 claimed that eight hours for day work and seven 
 hours for night work should be the limit; and 
 demanded an increase of fifteen per cent, on 
 salaries. They accomplished absolutely nothing, 
 and on the 18th of August the Brotherhood pro- 
 nounced the strike a failure, and advised all 
 operators who could secure situations to go to 
 work. 
 
 They paid an immense sum in lost wages for 
 their contest, *which Avas just and deserved suc- 
 cess. William Orton, President of the Western 
 Union Telegraph Company, testified before a 
 Congressional committee that telegraph operators 
 could not perform daily more than six hours 
 of continuous labor without endangering their 
 health. Their wages had been reduced twenty- 
 five per cent, in three years. They had grounds 
 for complaint, but striking brought no relief. 
 
 It is stated by Andrew Roy, formerly Ohio's 
 Mine Inspector, that the strikes among the Hock- 
 ing Valley coal miners have been almost annual
 
 10 ARBITRATION. 
 
 for the past twelve years. And he says that ''it 
 would be a very moderate calculation to place the 
 losses to the miners alone, the result of striking, 
 as equal to three hundred thousand dollars a 
 year." Thus in twelve years the loss to the 
 miners has been three million six hundred thou- 
 sand dollars! Labor able to be performed, but 
 absolutely annihilated. The mine operators' loss 
 is estimated very low at five millions of dollars. 
 Add to these pecuniary losses, the lawlessness and 
 bloodshed that has resulted from these heated 
 conflicts, and what answer can prove striking a 
 benefit to labor? 
 
 Pages and pages of narratives of these in- 
 jurious and unsuccessful contests between work- 
 men and capitalists could be recited. But enough 
 has been said to show that whatever good is 
 accomplished by these struggles is paid for at a 
 cost and sacrifice which never brings adequate 
 retur'is. 
 
 In this general censure of the uselessness of 
 strikes, 1 am not forgetful of the fact that oft- 
 times they have been the ultimate and only 
 remedies of lal)or in its effort to obtain justice, 
 lint I hold it to be true, that there is a better and 
 cheaper method of protecting the workingman, 
 an<l givin.^ liini justice in his disputes with 
 caj)ital. Mapj)ily infiuences are at work which
 
 ARBITRATION. 11 
 
 are daily directing, at the same time protecting, 
 labor in its demands. The trade unions of to- 
 day, contrary to the opinions of many, are the 
 most potent factor in preventing rash and useless 
 strikes in the domain of capital and labor. They 
 have their missions, and it has uniformly been 
 more for good than for evil. And when the}^ do 
 inaugurate a strike, this can be said for them — 
 that it is onl}^ done after the maturest delibera- 
 tion, and after the cost, as far as the governing 
 power can see, is fully estimated. William Trant, 
 in his valuable little treatise recently written on 
 Trade Unions, their Origin and Objects, Influence 
 and Efficacy, presents a very effective defense 
 against the charges made against them; and from 
 this source I quote at length, as showing their 
 relations to strikes. While he is speaking of the 
 English societies, it may be observed that the 
 same is applicable, but in a more appropriate 
 degree, to the societies of American workmen. 
 
 " In order, however, that trade unions may 
 lay claim to fitness for carrying out their objects, 
 they must show something more than that they 
 are able to conduct a strike to a successful issue, 
 to palliate the evils of an unsuccessful strike, and 
 to succeed in occasionally forming a board of 
 arbitration. They must show that in their very 
 nature they have the desire and power to prevent
 
 12 ARBITRATION. 
 
 strikes. It is gratifying to be able to state that in 
 this respect, also, the trade unions are eminently 
 successful. Indeed, economy, if nothing else, 
 would dictate such a policy. The executories 
 of trade unions have been taught by experience, 
 that even when an object is worth striving for, a 
 strike is often the worst, and always the most 
 expensive, wa}' of obtaining it. Strikes, as a 
 rule, are a dernier resort, and are more* frequently 
 discountenanced by the general secretary than 
 approved of by him. Indeed, it is the boast 
 of most trade union secretaries that they have 
 prevented more strikes than they have originated. 
 This is all the more creditable, because some 
 branch or other is always urging a strike. 'At 
 least twenty times in as many months,' wrote 
 Mr. Allan, 'we have recommended that a strike 
 should not take place.' 'About one-third,' an- 
 swered Mr. Applegarth, when questioned on the 
 subject by the Royal Commissioners, 'of the 
 applications made to us to strike, during the last 
 few years, have been refused;' and Mr. Mac- 
 Donald, Secretary of . the House Painters' Alli- 
 ance, said, ' Our parent society never originated a 
 strike, but has stopped many.' The desire of the 
 trade unionists to prevent strikes is also shown 
 by the following resolution, which was unani- 
 mously agreed upon at the Trade Unions' Con-
 
 ARBITRATION. 13 
 
 gress in 1874, viz.: 'That in the opinion of this 
 Congress, that in all trades where disputes occur, 
 and where it is possible to prevent strikes by 
 starting co-operative establishments, all trades 
 societies and trades councils be recommended to 
 render such assistance as lies in their power, and 
 thus, as far as possible, prevent strikes and lock- 
 outs in the future.' This, at any rate, shows that 
 the unions are as willing to devote their funds to 
 the prevention of strikes as to their origination; 
 and although some of the speakers to that reso- 
 lution showed a preference for co-operative prin- 
 ciples inconsistent with a thorough belief in those 
 of trade unionism, yet the congress wisely limited 
 its resolution to those circumstances when the 
 co-operative form of trading is certain to prevent 
 a strike, and not to the promulgation of co- 
 operative principles generally." 
 
 And he verified his argument by the accounts 
 of the various English trade unions, that they 
 spend, comparativel}', a very small per cent, of 
 their funds in sustaining strikes. In 1882, the 
 Amalgamated Engineers, with an income of 
 £124,000 and a cash balance of £168,000, ex- 
 pended in strikes, including the support they 
 gave to other trades, £890 only, less than one per 
 cent. The Iron Founders spent out of an income 
 of £42,000, £214; the Amalgamated Carpenters
 
 14 ARBITRATION. 
 
 wlio liad been engaged in strikes, expended 
 £2,000 out of £50,000, only four per cent.; the 
 Tailors spent £505 out of a fund of £18,000; the 
 Stone Masons, with a trade union of eleven 
 thousand members, spent nothing in strikes. 
 During six years, it is estimated that seven 
 English trade unions spent in the settlement of 
 disputes, £162,000 out of a capital of almost 
 £2,000,000. In 1S82, these specific societies, with 
 an aggregate income of £330,000 and a cash 
 balance of £360,000, expended altogether in 
 matters of dispute about £5,000. These figures 
 from Frederic Harrison's address before the Trade 
 Union Congress at Nottingham, in October, 1883, 
 certainly are creditable to the cause of trade 
 unionism. "When it is remembered that ninety- 
 nine per cent, of these societies' expenditures 
 were for benevolent and provident purposes, and 
 one per cent, only for strikes, it is absurd to say 
 that the chief object of a trade union is to foster 
 trade disputes." 
 
 As far as industrial organizations can prevent 
 these conflicts, they have lent all their powers 
 and machinery to that end. Yet in spite of their 
 unfjuestioned attempts, there has been, and will 
 contiinic to l)e, these terrible and costly struggles 
 wliicli have crippled ]a])or and its cause, and at 
 the same time almcjst destroyed the mechanism
 
 ARBITKATION. 15 
 
 of trade. The condition of things, therefore, 
 compels labor and capital in their own interests, 
 and society for its peace, to go farther and inquire 
 whether there is " a balm in Gilead " for these 
 troubles. Strife and stubbornness and bulldozing 
 have failed. The inhuman system of lock-outs 
 — capital's starving-out process — does not admit 
 of an argument in defense. The situation is 
 pointedly put by George HoWell, who was at one 
 time Secretary of the English Trade Union 
 Congress. Said he, '* the whole question lies in a 
 nutshell. Is brute force better than reason? If 
 it be, then a costermonger may be a greater 
 personage than a philosopher, and Tom Sayers 
 might have been considered superior to John 
 Stuart Mill." It is obvious, and it is needless to 
 argue the question, that public interests, as well 
 as the individual interests of employer and em- 
 ploye, would be best subserved if the same result 
 in industrial disputes could be attained without 
 the barbarisms of strikes and lock-outs. If 
 differences could be corrected amicably without 
 the cessation of labor and the depreciation of 
 capital, it would certainly be money in the- pocket 
 of the worker as well as the capitalist. Take, for 
 instance, the strike of the colliers of South Wales 
 in 1875. It included 120,000 workmen, and 
 lasted seventeen weeks. The loss in wages has
 
 16 ARBITRATION. 
 
 been variously calculated from three to five 
 millions of dollars; and, after all that loss, it was 
 finally settled by the miners and operators com- 
 ing together, and by reasonable methods arbitra- 
 ting their differences in a manner that provided 
 a basis which prevented many a subsequent 
 contest. 
 
 When men of labor and capital meet together 
 as men of business should meet, and discuss their 
 difFeronces, in a friendly spirit, the chances are 
 altogether in favor of an amicable settlement, 
 profitable in the end, to all concerned and parti- 
 cipating. Their success runs in parallel lines; if 
 they diverge or cross, the symmetry which the 
 laws of trade and nature design is marred. As 
 the bow unto the arrow is, useless one without 
 the other, so is labor and capital. Labor is 
 capital; capital is labor; and in this stage of 
 society we cannot have one without both. 
 
 There is a remedy for the conflict. It is the 
 remedy that civilized nations have substituted for 
 war; the remedy that has killed the doctrine that 
 " might is right." It is the submission to the 
 influence of reason. The voluntary arbitration 
 of labor's troubles and capital's claims, trusting 
 to an enlightened public opinion to sustain 
 awards, is the only rational method consistent 
 with the welfare of society. This conclusion is
 
 ARPilTRATION. 17 
 
 justified on the following summarized grounds: 
 
 1. Strikes have failed to accomplish what the 
 workingman demands, although they have given 
 him partial relief. 
 
 2. Their enormous cost in wages thrown 
 away has proven that no good that comes from 
 them is worth the price paid. 
 
 3. Their demoralizing effect, generally culmi- 
 nating in lawlessness and at times in hloodshed, 
 antagonizes public opinion to the just claims 
 of labor. 
 
 4. Their arbitrary management, which creates 
 a general idleness in a trade when the irritation 
 is local, is clearly unjust. 
 
 5. They lead to an unjust distribution of 
 wages by making the uniform rates of wages 
 established apply to the indolent and unskilful as 
 well as to the industrious and efficient workman. 
 
 Just arbitration has none of these evils. Is it 
 not better to make equity a living principle in all 
 disputes of the wage workers, and seek to bring 
 the force of peaceful justice into play, instead 
 of the more violent and damaging contests, which, 
 if won. are but defeats? How shall tliat be done? 
 How has it been done':^ We shall see.
 
 CHAPTER II 
 
 VOLUNTARY ARBITRATION — ITS METHODS 
 AND OPERATIONS. 
 
 AUBITRATION is the adjudication by private 
 persons appointed to decide a matter or 
 matters in controversy, on a reference 
 made to them for that purpose, either by agree- 
 ment of the disputants, or by the order or 
 suggestion of a court of law. When the subject 
 to be decided is one of work or wages, or both, 
 arising between employer and employe, it is 
 industrial arbitration. The proceeding generally 
 is called a submission to arbitration; the persons 
 appointed to decide are termed a Board of Arbi- 
 trators or Referees, and their opinion or adjudi- 
 cation of the subject-matter before them is called 
 an award. Boards consist usually of an even 
 number of members, and when they fail to agree 
 they call upon a third person who is known as 
 the umpire. His decision expresses the award. 
 One of the ancillaries to arbitration is the effort
 
 ARBITRATION. 19 
 
 to promote harmony and an agreement between 
 the disputants before their contest is subjected to 
 the formal inquiry and decision of arbitration; 
 this is known as conciliation. With these prefa- 
 tory and explanatory words, an examination will 
 be made into the methods and worth of industrial 
 arbitration. 
 
 I do not claim that courts of arbitration, even 
 when based upon the voluntary action of labor 
 and capital, are a complete panacea for all the ills 
 of trade and industry. As long as men have 
 passions there will be " wars and rumors of war," 
 but I do claim that they will, in a wonderful 
 degree, dispense Avith those disastrous agencies 
 now used in the settlement of trade disputes. 
 
 There is a distinction to be made in the 
 beginning between statutory arbitration and vol- 
 untary arbitration. The former applies to arbi- 
 tration, the awards of which have the force 
 of judgments of courts; in fact, such a board of 
 arbitration is a court for the time being, having 
 full power to subpoena witnesses and enforce 
 its judgments as a court of record. Voluntary 
 arbitration is an entirely different system. As 
 tlie term indicates, there is no authority of law 
 unless it be in the method of erecting the boards. 
 Its awards have not the force of judgments, and 
 it rests upon the honor of the disputants, rather
 
 20 ARBITRATION. 
 
 than upon the writ of the sheriif, to carry them 
 into effect. All the experience and history on 
 this question is uniformly to the effect, that the 
 only successful arbitration between labor and 
 capital in the past has been purely voluntary. 
 For years there have been upon the statute books 
 of many of the States laws providing for arbi- 
 tration of disputes, but they have never been 
 applied in labor troubles. Boards with a justice 
 of peace air about them, and clothed with powers 
 of compulsion, fines, and commitment, have 
 never been considered by contesting employer 
 and employe as a safe or judicious forum to 
 submit their case. In England since the fifth 
 year of the reign of George IV. (1824) there has 
 been in force a statute providing for arbitration 
 in the industrial disputes. Under it tribunals 
 with compulsory powers and processes were 
 created, but it still remains a dead letter, and has 
 been especially objectionable both to employers 
 and employed. 
 
 The opinion of those who have been close 
 observers of this matter are of interest as bearing 
 on this subject. In this country no man has 
 given the question of arbitration a broader and 
 deeper investigation than Mr. Joseph D. Weeks, 
 of Pittsburg. In 1878 he was appointed a special 
 Commissioner of the State of Pennsylvania to
 
 ARBITRATION. 21 
 
 proceed to England and examine in person the 
 methods and operations of the system of vokm- 
 tary arbitration, now a settled question in that 
 country. His comprehensive and able report to 
 Governor Hartranft in December, 1878, contains 
 the result of his full examination. He says: 
 "The voluntary feature of these boards is one to 
 which I desire to call particular attention. Both 
 Mr. Mundella and Mr, Kettle, to whom the cause 
 of arbitration and conciliation in England owes 
 much that it is, and who represent somewhat 
 diverse views on the subject, agree that these 
 boards should be voluntary and not compulsory. 
 Though there are acts of Parliament, which pro- 
 vide compulsory legal powers by which either 
 side can compel the other to arbitrate on any 
 dispute, these powers have never, in a single 
 instance, so far as I could learn, been used; but 
 the large number of differences that have been 
 settled by arbitration in Great Britain in the last 
 eighteen years have all been voluntary in their 
 submission and in the enforcement of the award." 
 Prof. W. Stanley Jevons, the eminent English 
 economist, speaking of arbitration, says: "All 
 available evidence tends to show that successful 
 boards of arbitration must be purely voluntary 
 bodies. * * * jj^ ^w probability success 
 will be best obtained in the settlement of trade
 
 22 ARBITRATION. 
 
 disputes by keeping lawyers and laws as much at 
 a distance as possible. There must be sponta- 
 neous, or, at least, voluntary approximation of 
 the parties concerned. It is a question, not 
 of litigation, but of shaking hands in a friendly 
 manner, and sitting down to a table to talk the 
 matter over. The great evil of the present day 
 is the entire dissension of the laborer and the 
 capitalist; if we once get the hostile bodies to 
 meet by delegates around the same table, in a 
 purely voluntary and equal footing, the first great 
 evil of dissension is in a fair way of being over- 
 come."* And Judge Rupert Kettle, a strong 
 advocate of arbitration, contends " that, according 
 to the spirit of our laws and the freedom of our 
 people, any procedure, to be popular, must l)c 
 accepted voluntarily by both contending parties." 
 
 Arbitration which is purely voluntary is best 
 advanced when the method of creating the boards 
 is prescribed by some rule or precedent. Hence, 
 legislation providing for an uniform manner in 
 the erection and operation of boards of arbitra- 
 tion is always advantageous. To this extent, and 
 this only, can laws figure with good results. 
 
 When the proceeding to create boards is pre- 
 scril)ed by statute, it gives to them a semi-official 
 character which attracts public attention to their 
 
 • The State in Relation to Labor. — 11'. Stanley Jevons, p. 103.
 
 ARBITRATION. 23 
 
 sessions and awards. In this way a critical and 
 acute public opinion, or sentiment, becomes one 
 of the strongest aids to fair and honest awards, 
 and it is one of the most effective preventives 
 against their repudiation. Often after the parties 
 consent to arbitrate, they disagree on the simple 
 matter of selecting the board. When the law 
 points a clear, fair, and uniform system of crea- 
 ting boards for voluntary arbitration, it takes 
 away this trivial cause of disagreement. And a 
 statute of this nature can go a long ways towards 
 providing for many of these preliminary steps 
 without in any way impairing the mutuality of 
 this system of arbitration. It can fix the mini- 
 mum number of each party in the board; it can 
 prescribe by whom the board may be officiall}^ 
 designated as such, and it need not at all interfere 
 with the selection of those who are to act upon it; 
 it can fix the jurisdiction of these boards as to 
 the territory and trade in which the}^ may arbi- 
 trate; it may limit and define the service of the 
 members of the board, provide for the time and 
 manner of electing the umpire, and may give the 
 boards powers as to testimony, as well as prescribe 
 their manner of making an award. 
 
 Voluntary arbitration then may be regarded 
 as the only practicable method of settlement, if 
 the parties arbitrate at all. Any other system
 
 24 ARBITRATION. 
 
 can be seen at a glance to be inoperative. While 
 decrees of statutory boards could be enforced 
 against the employers, they would as a rule be j 
 ineffectual against the workmen. Unfortunately 
 the latter are oftentimes proof against the execu- 
 tion of judgments. But when it is left purely to 
 the honesty and fair play of both sides, the , 
 chances of success are improved wonderfully. 
 Lack of the world's goods does not necessarily 1 
 mean lack of honor. The great mass of work- 
 men who would agree to arbitrate could safely be 
 relied upon to abide the awards. This objection 
 against voluntary tribunals of arbitration cannot 
 be sustained, for the instances are few where 
 either party has put his honor behind him and 
 refused to abide the award. The power of public 
 opinion is also great in sustaining a just award. 
 Boards in every instance consist of an equal 
 number of workmen and capitalists or employers. 
 Out of this body there may be appointed a com- 
 mittee of inquiry or a board of conciliation. 
 This latter l)oar<l takes cognizance of individual 
 disputes, and is wholly informal. It deals with 
 lesser troubles; it gives no decision on any given 
 matter, because no subject is ever referred to 
 them for settlement. They are the good Samari- 
 tans of tlie Board of Ar})itration. As their name 
 indicates, the}' are conciliators. If they fail by
 
 ARBITRATION. 25 
 
 friendly urging and inquiry to bring harmony, 
 the matter in discussion goes before the arbitra- 
 tors to be acted on formally. When the dispute 
 finally reaches the arbitrators, the claims of the 
 workingmen are stated by their Secretary; and 
 the objections, or vice versa, by the emplo^^ers 
 through their Secretary. The matter is then one 
 of judgment, reason, and justice. The parties 
 are presumed to meet as friends and as equals. 
 As well might there be no meeting at all if the 
 assembling is in any other spirit. And this is 
 one signal characteristic of success in arbitration, 
 that under it the parties meet as arbitrators before 
 they become enemies. Hence the necessity of 
 having the board erected before any strike or 
 dispute occurs. In time of harmony prepare for 
 the " winter of discontent." In prosperity is the 
 time to prepare for the antagonism of labor and 
 capital. When hard times come, and the compe- 
 tition of labor within itself is great, it is almost 
 impossible for the industrial classes to procure 
 their just concessions from capital. They become 
 enemies, and enemies can never arbitrate; friends 
 always can. 
 
 The man who works is equal to him for whom 
 he works. The difference, if any, between them 
 is in the qualities of their individual manhood, 
 and not in any positions they occu})V. Tlu*
 
 20 ARBITRATION. 
 
 failuro of the first board of arbitration in South 
 Staffordshire, England, was due to the fact that 
 the employers never realized this. They met, 
 were seated comfortably at a table with pens, ink, 
 and j)aper, and installed their chairman; the 
 workmen were shown to a bench at the side 
 of the room, and seated as if they were in court 
 awaiting to be tried, rather than fellow citizens 
 assembled to agree upon a contract which was as 
 important to them as to their emplo3'ers. Under 
 our American ideas such an affair would not 
 settle anything. 
 
 After the erection of a board, a matter of vital 
 importance is the selection of an umpire. This, 
 like the board itself, should be settled upon before 
 the contest ripens into the heat of a litigation. 
 Who he should l)e, liis qualities and capacities, 
 form the gravest questions in voluntary arbitra- 
 tion. Must he have a familiar and practical 
 knowledge of the subject-matter in dispute? 
 Experience in this proves nothing. Some of the 
 best uiiij>ii-('s in tliis country and in England 
 have been devoid of any practical knowledge of 
 the trade in wliicli the dispute occurred. Thomas 
 Plughes, M. P., Thomas Brassey, M. P., Henry 
 C'rompton. and lUipert Kettle have been among 
 tlic most triist(Ml and successful umpires in 
 Englisli arl.ili-ation, but none of them have been
 
 ARBITRATION. 27 
 
 practically connected with manufacturing or min- 
 ing trades in which their judgment has always 
 been received. They have had the confidence 
 of the disputing parties, and have given their 
 references the strictest and most impartial inves- 
 tigation. Just as successful arbitrators were men 
 who have been extensive manufacturers, as A. 
 J. Mundella and others. The workingmen in 
 England call those who decide upon knowledge 
 not acquired practically, " stranger referees," and 
 they have been strangely prejudiced against them, 
 but are beginning to view the matter differently, 
 so that it makes but little difference at this time. 
 The cause of antipath}^ to "stranger referees" is 
 principally one of class, a feeling that there is a 
 lack of sympathy for the laborer. This objection 
 in this country would hardly arise, as both parties 
 would demand good judgment and honesty, and 
 would have no fears as to prejudice. 
 
 The umpire is distinctively a judge. If a 
 man will put himself through a course of study 
 on the subject of his decision, there is no reason 
 why he should not give as fair and as competent 
 a judgment as if he were engaged all his life in 
 the business. Courts of law are the daily ex- 
 amples of men dealing in practical things with a 
 theoretical knowledge. This is notably the case 
 in patent litigation. Questions of the most
 
 28 ARBITRATION. 
 
 practical and scientific machinery are decided 
 witli justice and competency. The principal 
 quality desired in an umpire is integrity and 
 levelheadedness, with an intelligent conception 
 of what he is to pass upon. 
 
 It is not desirable here to lay down any 
 principle or basis on which awards can be made. 
 That is a duty peculiarly attached to each indi- 
 vidual case of arbitration. The Board having 
 met, arp supposed to be within honest reach of 
 ever}' fact and all information that will give them 
 light in an honest investigation. If the dispute 
 be one of wages, assuredly the basis becomes the 
 ability of the manufacturer to pay, the condition 
 of the market, and the demands of the workmen. 
 To agree upon a basis is the very object of a 
 board of arbitration. Mr. Weeks, in his report 
 referred to, concerning this, says: '*As a matter 
 of information it ma}' be said that the practical 
 operation of the boards, while all the facts rela- 
 tive to prices, competition, demand and supply, 
 both of labor and products, are considered, wages 
 are generally based on the selling price of the 
 article produced. Mr. Kettle, in a noted arbitra- 
 tion in the coal trade, found a certain date at 
 which the wages paid for work about the colliery 
 was satisfactory to l)Oth sides. This became the 
 ideal, and served to fix in a general way a ratio
 
 ARBITRATION. 20 
 
 of wages to prices that would be a satisfactory 
 one to both parties. Due notice was taken of 
 any changes that had occurred that should serve 
 to increase or diminish this ratio, such as reduc- 
 tion in the hours of labor, increased expense 
 from the mine inspection laws, etc.; and the 
 arbitrator in his award endeavored to approxi- 
 mate this ratio as near as could be done without 
 injustice or injury." This, of course, necessitates 
 an examination of the books and business of the 
 employer. For this reason it has been strenu- 
 ously objected to. But the objection as compared 
 with the result at issue is certainly captious. No 
 investigation that would reveal transactions nec- 
 essary to business success is demanded. The 
 question of simply what was the selling price at a 
 time agreed upon, is all the board would require 
 to be answered. Any confidential imparting of 
 information would certainly be regarded by the 
 board, representing, as it is supposed, the honor- 
 able element of labor and capital. 
 
 After all, it will be asked, may not the Board 
 of Arbitration and umpire make a mistake, per- 
 haps against the wageworker and perhaps against 
 the employer? Certainly. But is there as much 
 likelihood of error in the decision by arbitration 
 as there is in the violent and blind impulses of a 
 strike or a lock-out? As long as candid and cool
 
 / 
 
 30 ARBITRATION. 
 
 investigation is superior to rash aiul unreasonable 
 action, thus long will arbitration be less fruitful 
 of mistakes than strikes. Under the control 
 of voluntary arbitration, facts and figures of 
 business take the place of malevolence and mere 
 assertion, and where a board w^ould err once, a 
 strike would err three times. Besides, no board 
 or uni})ire, such as would be selected by intelli- 
 gent workmen and employers, could make a 
 grossly serious mistake. And such a departure 
 as might even sometimes be made — and to err is 
 a parcel of our humanit}' — would only equal a 
 short time in amount of wages. Even presuming 
 an error, is not that far superior to a strike? 
 Boards of Arbitration cannot operate so as never 
 to commit an error, but they commit fewer errors 
 than contests of force. 
 
 The force of public opinion in sustaining the 
 justice of an award of a board, is an important 
 aid to the system of voluntary arbitration. In 
 this labor would have the advantage, for invari- 
 ably ill strikes, where justice is on the side of the 
 worker, the opinion of an enlightened and reading 
 American i)ublic has been with him. This feeling, 
 that the arbitrators themselves would have to 
 face the bar of public sentiment, and hear the 
 reflex judgment on their award, would be the 
 most potent i\wU)r in prompting them to w^eigli
 
 ARBITRATION. 31 
 
 candidly, justly, and carefully all that comes 
 before them. This would, of course, be cumula- 
 tive to their own independence, integrity, and 
 ability. 
 
 In order to be of the most advantage, these 
 tribunals should be permanent, having a con- 
 tinued existence, and ready at any time to take 
 jurisdiction of a dispute. In this way the best 
 material may be obtained for the board, and its 
 judgments will be calmer. To select the arbitra- 
 tor from the participants of a struggle, manifestly 
 is an impediment to a fair judicial hearing. The 
 most successful boards of arbitration are those 
 that have been permanent and held stated meet- 
 ings at regular intervals. This periodical assem- 
 bling of employers and employed to discuss small 
 differences, perhaps, or questions of social ad- 
 vantage to each, is a very valuable feature. It 
 gives both parties a knowledge of their demands, 
 necessities, and expenditures. The facing of 
 capital and labor as companions and friends is 
 of equal benefit and interest to each. Many of 
 the disputes in the industrial world can be attrib- 
 uted to lack of information in the party origina- 
 ting the struggle, while a social contact and a 
 mutual interchange of conditions and abilities 
 will make labor just in its demands and temper 
 capital in its claims. And thus b}^ the modera-
 
 82 ARi:iTKATI()N. 
 
 tion and forbearance peace can dwell V)et\veen 
 them, and more be obtained by both sides than 
 if disputes were summarily created. 
 
 The submission, discussion, and decision of 
 industrial (juestions to voluntary boards of ar- 
 bitration is purely a matter of business, and is 
 clearly the best plan devised by the wit of man to 
 avoid unnecessary destruction and loss to labor. 
 No other system recomuiends itself in which "a 
 fair price for a fair day's work " is arrived at on 
 as just a basis and by as reasonable a method. 
 The conflicts of suspicion and distrust between 
 manufacturer and employes render the first 
 periods of boards of arbitration trying, and, at 
 times, discouraging. Oppositions growing out of 
 ''matters of sentiment" are generally foolish and 
 intangible, and furnish no proper cause for the 
 exercise of the peace making power. At the 
 same time they are apt to be the source of 
 disputes. The best remedy for this unfortunate 
 condition of tilings is the friendly contact and 
 association of representative workmen and em- 
 ployers, til at necessarily follows from the opera- 
 tions of voluntary tribunals. 
 
 The arbitration which is clothed with the 
 })()wer of the law in its methods of deciding and 
 in ciitorcing its awards, has some ardent and 
 intelligent advocates. Some friends of arbitra-
 
 ARBITRATION. 33 
 
 tion have claimed that a legal power to enforce 
 the award is fully necessary to a completeness in 
 voluntary arbitration; others, equally sincere and 
 desirous of its success, have maintained that to 
 make arbitration anything but voluntary would 
 be to make it inoperative. There are now in 
 existence three laws in England relating to arbi- 
 tration, and all providing for a legal enforcement 
 of the award. The first of these, before referred 
 to, was passed in 1824, and the others in 1867 
 and 1872. These latter acts were originated by 
 Lord St. Leonards and Mr. A. J. Mundella, M. P., 
 respectively. They embody the compulsory pro- 
 cesses in a court of arbitration, as well as some 
 minor provisions as to method of appointment, 
 time of meeting, etc. Execution upon goods and 
 chattels, as well as impris'onment, are the com- 
 pulsory manners of enforcing awards. These 
 acts have not been taken advantage of, and they 
 are not regarded with much favor by manu- 
 facturers or workmen. The bright instances of 
 the success of arbitration have uniformly been 
 those purely voluntary. The rigors of the law 
 have not in any case been called into play to 
 enforce an aAvard. That " aggregate honor of 
 individuals, which our French neighbors call 
 esprit du corps," is the power which sustains the 
 decrees of voluntary boards.
 
 34 ARBITRATION. 
 
 There is no question but that where all the 
 proceedings have been voluntary, that some 
 awards which can be equally enforced upon 
 capitalists and workmen, would be improved by 
 conferring legal process. Instances have occurred 
 where awards have been repudiated and rejected, 
 but as compared with those acted upon and 
 sustained, their number is few. In some cases 
 where the feeling has been strong, upon the 
 publication of an adverse award there has been 
 sulking and disappointment among workmen, but 
 the whole line of experience confirms the state- 
 ment that most awards, satisfactory or otherwise, 
 have been acted on. The management of boards 
 should be to eliminate from their decisions all 
 feeling of conquest or defeat. The business aspect 
 of the arbitration, and the desire to promote 
 harmony and good-will, should be steadfastly 
 adhered to. 
 
 The history of labor, especially of P^ngland 
 and France, is the brightest testimony to the 
 success of voluntary arbitration. Its unques- 
 tioned benefits and harmonizing influence seem 
 to have given labor renewed confidence in its own 
 intellectual strength, while capital has multiplied 
 its successes with justice and generosity. 
 
 One incident in the development of industrial 
 arbitration is worth recording, for it sheds a
 
 ARBITRATION. 35 
 
 volume of light upon its advantages: Eighteen 
 years ago the North of England iron district was 
 in a state of anarchy, resulting from the social 
 struggles of labor against capital. A terrible 
 conflict about wages paralyzed the trade. The 
 capital invested in the enormous mines and iron 
 lay idle for months. " Crowds of hunger smitten 
 workmen begged for bread in the streets, or 
 savagely denounced the capitalists who were 
 trying to starve them into submission." There 
 had been strikes and lock-outs in this region 
 before that of 1866, but that year saw the most 
 horrible of all. After four months of idleness, 
 ruin, and disaster for all concerned, the workmen 
 were compelled to work at their employers' terms. 
 An ill-natured, malevolent era of peace followed. 
 The revival of trade in 1869 brought on all the 
 old symptoms of past strife, and, filled with fear 
 and disgust, workman and owner waited for the 
 storm to burst. But both were saved by the 
 establishment of a board of arbitrators, which has 
 existed successfully ever since. By this simple 
 but effective method the iron trade of the North 
 of England rid itself forever of the curses of 
 strikes and lock-outs. And there are now no fewer 
 than 100,000 wageworkers in that region practi- 
 cally secured against industrial trouble by the 
 adoption of the principle of voluntary arbitration.
 
 '?,(') ARBITRATION. 
 
 Principles, which, when practically api)lied, 
 work out such results, are worthy of the best con- 
 sideration. They appeal to our better humanity. 
 The spirit of the times puts force in the back- 
 ground in the settlement of conflicts, whether 
 individual or international. It only justifies the 
 appeal to force and arms when rights cannot 
 otherwise be protected or maintained. The pro- 
 gress that has driven duelling from society makes 
 nations hesitate before warring over fanciful 
 wrongs. The same progress condemns labor 
 taking the law into its own hands for the redress 
 of its wrongs. This suggests a question : Why 
 may not the same spirit of peace that is over- 
 spreading men and nations enter the arena of 
 labor's conflicts? That light of intellectual ad- 
 vancement, to which no nook or corner of our 
 race is impervious, has beamed upon the man 
 of labor, and brightened him into as shining a 
 figure as the man of capital. This is truer of the 
 American laborer than of any other. Here, in 
 the civilization of a new world and a new era, he 
 is a factor of the government in which he lives; 
 and, as he is this, it is the grossest injustice to 
 compel him to hght for his rights in an uneven 
 contest against capital. 
 
 Labor will never obtain its fullest meed of 
 success in its conflicts, save through the legitimate
 
 ARBITRATION. 37 
 
 channel of intelligent contest. The stubborn 
 fight which is determined by brute endurance or 
 financial backing will be valueless and costly. 
 When the workingman meets his employer with 
 facts, and figures, and reason, in his demand for 
 higher wages, he will win his point, if he is right. 
 Society and public opinion will see that he does; 
 if he is not right, he ought not to win. 
 
 Tribunals to ,try the disputes between labor 
 and capital are the results of that same pro- 
 gressive evolution which has characterized every 
 branch of science, art, commerce, and industry. 
 They are the outgrowth of the elevation of labor. 
 
 A long time ago, in 1846, the ultimate resort 
 to peaceful settlement was prophesied by John 
 Bright in his speech on the Factory Bill. Speak- 
 ing, then, he said: "The working classes would 
 every day become more and more powerful and 
 intelligent, not by violent combinations or colli- 
 sions with their employers, but by a rational 
 union amongst themselves, by reasoning with 
 their employers, and by the co-operation of all 
 classes."
 
 CHAPTER III 
 
 ARBITRATION IN FRANCE AND BELGIUM — 
 THE "CONSEILS DES PRUDHOMMES" 
 — THE ARBITRATION ACT OF AUSTRIA. 
 
 IT was late in the history of humanity before 
 labor was crowned with freedom. None of 
 the ancient nations recognized labor as any- 
 thing but slavery in one form or another. The 
 condition was but little changed for centuries. 
 England was subsequent to France in securing 
 liberty and standing to the laborer. The Magna 
 Charta of English liberties had no application to 
 the workers by hand and muscle. It was a gift 
 to the barons and their equals. It applied to 
 about half of the people of England at that time; 
 that is, those who were freemen. The laborer 
 was a villein, and a villein was a slave; he was 
 not considered a subject. He had no organiza- 
 tion or method of protection. For fifteen centu- 
 ries the only protector the laboring man had 
 against his owners and masters was the Church.: 
 
 i
 
 ARBITRATIOX. 39 
 
 She stood, the enemy of the oppressor of the 
 poor, and she stood alone in her protectorate. 
 Afterwards, wlien the working classes obtained 
 representation in the legislature, they found in 
 the Parliament and lawyers friends and pro- 
 tectors. With these three intercessors the laborer 
 came into sunlight. The French laborer de- 
 veloped rapidly; and it is to France that we must 
 look for the origin of industrial arbitration. In 
 the history of her labor she furnishes the proto- 
 types of the peace and contlict of the trades 
 of to-day. for we find the immense strikes of 
 modern times foreshadowed by the Jacquerie 
 riots of the fourteenth century. 
 
 Unquestionably the first systematized method 
 of settling trade disputes in industrial history is 
 to be found in the " Conseils des Prudliommes.'"* 
 This institution is well defined in the law of its 
 origin (March 18. 1806) as follows: -The Cornells 
 des Pr/id'hommes is established in order to put an 
 end, by means of reconciliation, to the small 
 disputes which arise daily, either between em- 
 ployers and wcirkmen. or between foremen and 
 workmen and apprentices." These courts were 
 established by Napoleon at the petition of the 
 workingmen of Lyons. A similar institution 
 had existed in that city prior to the passage 
 
 •Councils of Wise Men.
 
 40 ARBITRATION. 
 
 of tliis general law. In Lyons, then, may be 
 fixed the birth of arbitration. And it is fitting 
 that it should be so. This city, a perfect citadel 
 of labor, is the chief silk emporium of France, 
 and for the manufacture of the best qualities 
 of silks is unrivalled. It has thirty thousand 
 looms, and including the suburbs, over one 
 hundred thousand. The number of workers 
 emploj'ed there in the silk industry at the present 
 time is not less than one hundred thousand. A 
 strike is a rare occurrence, yet disputes are 
 frequent; but through the agency of these Conseih 
 dcs Prudliommes they are settled cheaply, and 
 without much loss of time or mone}" to either 
 operators or operatives. The example of Lyons 
 was soon followed by the principal cities of 
 France. In 1807, Conseils des Prudliommes were 
 established at Rouen and at Nismes; in 1808, at 
 Avignon, Carcasonne, Mulhouse, St. Quentin, 
 Sedan, Thiers, and Troyes; in 1809 and 1810, at 
 Rheims, Lille, Marseilles, and many smaller 
 towns. In 1813 there were twenty-seven of these 
 courts in France, and in 1840 there were sixty- 
 four. Paris established its first council December 
 20, 1844. They have been increasing yearly, and 
 ihcii- careers have been signalized by the most 
 satisfactory results. The statistics reveal the 
 fad, that '.10 per cenl. of the cases brought before 
 
 I
 
 ARBITRATION. 41 
 
 them have been amicably settled. In 1847 there 
 were sixty-nine of these councils in France, and 
 in that year they had 19,271 industrial disputes 
 submitted to them; of this number, 17,951 were 
 adjusted by conciliation. In 1850, of 28,000 
 cases, 20,800 were settled by conciliation. The 
 number of Conseils des PrucVhommes in 1874 
 Avas 112; at the present time there are about 
 150. 
 
 The history of the Conseils des Prud'hommes* 
 shows that the struggle of the workingman in 
 France has been for equality with his employers. 
 This is illustrated by the decree of June 11, 1809: 
 " The Conseils des PruxF hom.mes will be composed 
 of masters and workmen; but in no case will the 
 numher of the latter be equal to that of the former^ 
 In this condition the workmen were at the mercy 
 of their employers. It was not imbued with the 
 spirit of fair play; and the French mechanic is a 
 great deal like the American — he wants an equal 
 chance in all his conflicts. He struggled against 
 this; and in 1848, when almost everything was 
 reorganized in France, equal representation of 
 labor and capital was made the basis of the 
 
 *For an interesting account of the workings and history of the Conseils 
 des Prud'hommes, the reader is referred to "An Account of the Legislation 
 Affecting Labor and the Condition of the Working Classes in France, by M. Louis 
 Blanc," in the Report of the Committee on Trade Societies of Great Britain 
 
 —London, 18G0.
 
 42 ARBITRATION. 
 
 council. Therefore, in the law of the 9th of 
 June, 1848, it was enacted: 
 
 "That in the ' Conseils des Prudliommes ' the 
 two conflicting interests should he represented by 
 an equal number of employers and employed; 
 
 " That this number should be neither below 
 six nor above twenty-six, and should in every 
 case be an even number; 
 
 ''That the ^Prud' homines' belonging to the 
 class of employers should be elected by the em- 
 ployed from a list of candidates presented by the 
 employers ; 
 
 "That the 'Prud'hommes' belonging to the 
 class of employed should be elected by the em- 
 ployers from a list of candidates presented by the 
 employed; 
 
 " That in the event of the votes in the council 
 being ecjually divided, the President should have 
 a casting vote; 
 
 "That the council should be alternately pre- 
 sided over by an employer elected by the em- 
 ployed, and by an employed elected by the 
 employers." 
 
 The method of electing the members and the 
 ap})ointment of the presidents of the council 
 were changed by the law of June, 1853, and by 
 thai it was left to the employers to elect their 
 own representatives, and (o the employed to elect 
 
 J
 
 ARBITRATION. 43 
 
 theirs; and the appointment of the President and 
 Vice-President was retained by the government. 
 
 At present each council consists of a Presi- 
 dent and Vice-President, not necessarily either 
 workmen or employers, and twelve members, six 
 of whom are elected by employers and six by 
 workmen. This board or council has cognizance 
 of all controversies arising between master- 
 manufacturers and their workmen, and also be- 
 tween the latter and their apprentices. Under 
 the law the term of half of each class of the 
 board expires every year. It is the first duty 
 of this court, in "case of a disagreement, to sit as 
 a court of conciliation; and, if it fails to bring 
 the parties to an understanding, it has the power 
 to arbitrate the dispute. On all matters where 
 two hundred francs or under is involved, it has 
 final jurisdiction, but in higher amounts there is 
 a right of appeal to the Chamber of Commerce; 
 in fact, every question, except that of future 
 wages, is a proper one for the Conseils des Prud'- 
 liommes to consider. The}^ may even consider 
 this question, if the disputing parties so agree. 
 
 It should be borne in mind that the operation 
 of these councils is not strictly voluntary. The 
 submission is voluntary, but the processes and 
 enforcement of the awards are sanctioned by the 
 penalty and powers of the law. Yet their con-
 
 44 ARBITRATION. 
 
 ciliatory feature, which so closely resembles the 
 English system, is purely voluntary. 
 
 Tlie ol)Jectionable feature, especialh^ to the 
 American workman, is the intermeddling of the 
 government in selecting the presiding officer or 
 umpire. In this there is a radical departure in 
 the English S3'stem of voluntar}^ arbitration, 
 where the board itself selects the umpire. There 
 seems to have been a political object in the 
 French government framing the law thus. M. 
 Louis Blanc, in his letter " On Legislation Affect- 
 ing Labor in France," says of this: "I must give 
 Napoleon credit for using this weapon in such a 
 manner as is calculated to wheedle into submis- 
 sion to his sway the least enlightened portion 
 of the working classes; for the watchword of the 
 Presidents in the Conseils des PrucVliommes seems 
 to be, since the Empire was re-established: 'Let 
 us turn the scale in favor of the operatives;' and 
 I have it from workmen thoroughl}^ acquainted 
 with all that refers to their class, that whereas 
 under the reign of Louis Philippe the masters 
 mostly carried their causes, it is just the reverse 
 which hap})ens now, the imperial policy being to 
 indemnify the workingman by some material 
 advantages for the loss of those lofty ennobling 
 enjoyments, which man derives from the sense 
 of his self-dependence secured, and of his dignity
 
 ARBITRATION. 45 
 
 unimpaired." This was the view of one of the 
 most eminent agitators of the labor question in 
 1860. The answer of subsequent years, in the 
 marked success of the councils, has largely 
 stripped the criticism of its force. 
 
 The worth of arbitration as practiced in 
 France, is testified to in the Reports of Lord 
 Lyons in 1870, " Respecting the Condition of the 
 Industrial Classes in Foreign Countries," the 
 statement on French labor closes as follows: 
 
 " To give an idea of the success of the Conseils 
 des Prud'hommes in terminating disputes by rec- 
 onciliation, it may be mentioned that in all in- 
 dustrial centres in which such courts exist, they 
 effect a reconciliation in ninety-five out of 100 
 cases brought before them. This satisfactory 
 result is easily explained. The election of the 
 Prudliommes implies the confidence of the elec- 
 tors in his uprightness and capacity. He natu- 
 rally exercises with a kindly zeal the functions 
 which have been awarded to him by his equals as 
 a mark of esteem; his voice appeals with effect 
 to feelings of justice and moderation, calms the 
 irritation of disputants, and diminishes exagger- 
 ated pretensions. Above all, the effect of his 
 good advice is not prejudiced by the professional 
 pleading of counsel. At the Bureau de Judg- 
 ment, as well as at the Bureau de Conciliation,
 
 46 ARBTTRATION. 
 
 tlie parties must appear in person without the 
 intervention of a hiwyer."* 
 
 The workingmen of France, through their 
 organized unions, have given to their courts of 
 arbitration solid and substantial encouragement 
 and api^roval. This alone is the best certificate 
 of tlieir value. And yet how can it be otherwise 
 upon the exhibit of what they have accom- 
 plished? Lord Brougham, in the House of 
 I^rds in 1859, in a debate on strikes, said: "It 
 was impossible to read the annual report of the 
 Couseils des Prudliommes without wishing to see 
 some analagous provisions in our own law." His 
 wish was afterwards fulfilled. 
 
 In Belgium the French system is adopted, and 
 under the same name. While the success of the 
 councils in Belgium is not the same as in France, 
 they have been of incalculable benefit. The 
 manner of operating is practically the same in 
 both countries, and the composition and juris- 
 diction of the councils are similar. There is a 
 dillerence, however, in this: the Belgian Cfmscils 
 de.s Friidlioinmes have a criminal jurisdiction, 
 
 * Kach council has a Burcan dc Judgment and a Bureau de Conciliation. 
 The lliirenu dc Jiidiimeiil sits once a week, or once a fortnight; two-thirds of 
 the council form a court. The liurean dc Conciliation, formed of one Prud'- 
 tiomnie employer and one Prud' hommc workman, may be said to sit perma- 
 nently, alwayx ready to hear complaints and to transact business every day. 
 — lieportu ReHjtccling the Condition oj the Industrial Classes in Forei</n Countries, 
 Londtm, 1870.
 
 ARBITRATION. 47 
 
 which has largely impeded their progress and 
 usefulness. They are clothed with a police court 
 process, which, in all countries where arbitration 
 has been tried, has proven detrimental to peace 
 between labor and capital. There is too much 
 of the machinery of the law, and not enough left 
 to the voluntary spirit of the workmen and 
 emplo3^ers. 
 
 In Austria, by the law of May 14, 1859, 
 arbitration courts were established in every im- 
 portant town and district. Their function is to 
 settle all disputes respecting wages, continuance 
 of work, fulfilment of contracts, and claims on 
 benefit clubs and relief funds. They are com- 
 posed of workmen and employers, each elected by 
 their own class. The workmen are paid by the 
 commune for every day's sitting. The jurisdic- 
 tion of the arbitration courts extends to the usual 
 subjects of dispute in the trades. Their awards 
 have the force and effect of judgments of courts. 
 Legal and compulsory process can be issued for 
 the purposes of investigation. 
 
 The uniform history of arbitration in France, 
 Austria, and Belgium has been that of elevation 
 of labor. While the lot of the workingman in 
 those countries in no way approaches the inde- 
 pendence and position of his^ American brother, 
 it is far ahead of what it might be; yes, what it
 
 48 AKI'.ITRATION. 
 
 liiis \)vvn, wlicii he depended on the wager of 
 striking for a remedy for his wrongs. In Austria 
 these courts are tlie real and only methods of the 
 workingman's defense. The law makes strikes 
 and lock-outs illegal. Combinations by manu- 
 facturers and all other employers, to control trade 
 or lower wages, are made penal offenses. The 
 same is true of combinations of workmen, to 
 organize strikes or raise wages. Hence the neces- 
 sity and advantage of their arbitration courts. 
 But, as was before remarked, there is too much 
 governmental control to suit the American work- 
 man. Such courts would not operate in this 
 country, or even in England, but their history is 
 a step in the progressive march of labor to the 
 forum of judgment and reason. They are, doubt- 
 less, the best institutions for the countries in 
 which they exist. And they prove that the 
 verdict of an ojien and fair trial is preferable to a 
 conciiK'st wrung from unwilling hands, ofttimes 
 at fearful cost.
 
 CHAPTER IV. 
 
 ANTHONY J. MUNDELLA, THE FOUNDER 
 OF ENGLISH ARBITRATION. 
 
 THE life of Anthony John Mundelhi, dis- 
 tinguished by Henry Crompton as " the 
 inventor of systematic industrial concilia- 
 tion," is an appropriate and necessar}^ introduc- 
 tion to the history of voluntary arbitration in 
 England. 
 
 His career in the English Parliament, as the 
 representative of Sheffield, which commenced in 
 1868, stamped him as a radical champion of the 
 rights of labor. 
 
 He is of half Italian and half English an- 
 cestry, and was born at Leicester in 1825. A 
 scion of that wide nobility — the common people, 
 his whole life is an index of his origin. He com- 
 menced life as a " printer's devil," but through 
 its early stages accumulated b}' indefatigable 
 industry a valuable education. At the age of 
 eleven years he was apprenticed to the hosiery-
 
 ")() ARBITRATION. 
 
 trade, in ^\■llicll he remained until his eighteenth 
 year. His business capacity and intelligence 
 attracted the attention of his employers, and in 
 his nineteenth year he was engaged as manager 
 of a large cotton trade enterprise. When twenty- 
 three years of age, at Nottingham he became 
 partner in one of the largest hosiery firms in 
 England, Hone, Mundella & Co. In this capacity 
 he was the employer of three thousand working- 
 men. It was here that he displayed that broad 
 Christianity and wise economy which have made 
 his name a lasting one in the history of British 
 industry. 
 
 In 1S(')() he conceived and put into practical 
 operation the first attempt at voluntary arbitra- 
 tion in P^ngland. The hosiery trade at that time 
 was paralyzed and torn with industrial strifes. 
 Employers and workingmen were at " swords' 
 points," and the only mutuality between them 
 was that of distrust and malevolence. The 
 season of eleven weeks was rife with strikes and 
 lock-outs; and it was out of this state of affairs 
 that the Nottingham Board of Arbitration and 
 Conciliation sprung up. After considering the 
 serious condition of trade and industry, Mr. 
 Mundella evolved a remedy. Says he, in his 
 testimony before the Trades Union's Commission 
 in bSCT: " 1 had heard of the Coiimih des Pnid'-
 
 ARBITRATION. 51 
 
 liommes in France; and with one or two others I 
 built up a scheme in my imagination of what I 
 thought might be done to get a good under- 
 standing with our men, and regulate wages." 
 
 The employers held a meeting, and appointed 
 a conference committee of three from their num- 
 ber to meet with the workingmen. 
 
 The result is given in Mr. Mundella's own 
 way: "We three met perhaps a dozen leaders 
 of the trades union, and we consulted with these 
 men ; told them that the present plan was a bad 
 one, that it seemed to us that they took every 
 advantage of us when we had a demand, and we 
 took ever}^ advantage of them when trade was 
 bad, and it was a system mutually predatory. 
 And there is no doubt that it was so; we pressed 
 down the price as low as we could, and they 
 pressed up the price as high as they could. This 
 often caused a strike in pressing it down, and a 
 strike in getting it up; and these strikes were 
 most ruinous and injurious to all parties, because, 
 when we might have been supplying our cus- 
 tomers, our machinery was idle; and we suggested 
 whether we could not try some better scheme. 
 Well, the men were very suspicious at first; 
 indeed, it is impossible to describe to you how 
 suspiciously we looked at each other. Some 
 of the manufacturers also deprecated our pro-
 
 52 ARBITRATION. 
 
 ceedings, and said we were degrading them and 
 humiliating them, and so on. However, we had 
 some ideas of our own, and we went on with 
 them; and we sketched out what we called a 
 Board of Arbitration and Conciliation." 
 
 Thus was instituted the first voluntary tribu- 
 nal of trade disputes in England, and it became 
 known as " The Board of Arbitration and Concil- 
 iation in the Clove and Hosiery Trade." It held 
 its first meeting at Nottingham, December 3, 
 1860, and was a harbinger of many others. 
 
 The reign of peace was a reign of success. 
 Ten years later, in the Contemporary Review, Mr. 
 Mundella reviews his woi-k as follows: " Since the 
 27th of September, 1860, there has not been a 
 l)ill of an}' kind issued. Strikes are at an end, 
 also. Levies to sustain them are unknown; and 
 one shilling a year from each member suffices to 
 pay all expenses. This — not a farthing of which 
 comes out of the pocket of their masters — is 
 equivalent to a large advance of wages. I have 
 inspected the balance sheet of a trades union 
 of ten thousand three hundred men, and I found 
 the expenditures for thirteen months to amount 
 to less than one hundred pounds." 
 
 'I'lic success of the Nottingham arbitration 
 attracted the attention of the public; and it was 
 recognized tluit at least one step had been taken
 
 ARBITRATION. * 53 
 
 for the abolition of labor strikes and struggles. 
 Mr. Mundella received invitations from many 
 towns, notably Sheffield, to lecture upon his 
 system of voluntary arbitration. No other city 
 in England had suffered in her trade so much 
 from trade disputes as Sheffield. Her working- 
 classes and employers hailed with cheer this 
 application of new principles to industry. They 
 were tired of the many fruitless fights in which 
 they had engaged. And they not only gladly 
 listened to the new gospel of Mundella, but in 
 1868 they demanded that he stand as one of their 
 candidates for Parliament. This he did, and was 
 elected, running largely " ahead of his ticket." 
 
 He entered Parliament representing the work- 
 ingmen of Sheffield, yet clothed in his own 
 modesty. And right faithfully in his whole 
 political life has he stood by the interests of his 
 constituents. By the thoroughness and practi- 
 cality of his speeches, he soon became an ac- 
 knowledged leader. His speech on the Education 
 Bill was the most important in the debate, so 
 says Mr. Gladstone. It ought to have been. Mr. 
 Mundella had investigated by personal examina- 
 tion the school systems of the United States, 
 Germany, Switzerland, and Holland. In his 
 advanced and honored position he never forgot 
 the condition of his fellow toilers whom he had
 
 54 ARBITRATION. 
 
 left beliind. He worked indefatigably night and 
 day to re})('al the Criminal Law Amendment Act, 
 which bore heavily and unjustly upon workmen. 
 The Factor}' Nine Hour Bill had no stronger 
 advocate and friend in all Parliament. To Mr. 
 jNIundella, more than any other one man, can be 
 credited the repeal of the former and the passage 
 of the latter. 
 
 If a comparison should be wanted in Ameri- 
 can public life for Mr. jMundella, no character 
 would be better suited for that purpose than 
 Thaddeus Stevens. The eminent Sheffield Lib- 
 eral possesses all the tenacity and stubl^orn con- 
 scientiousness of the Pennsylvania Commoner. 
 The fealty of Mundella to the interests of the 
 common people has made him one of their 
 tribunes. His position as the father of volun- 
 tary arbitration has made him a benefactor to the 
 laboring classes. And they knew it, too, for right 
 royally have they stood by him in sustaining his 
 Parliamentarv career. The motive which has 
 prompted him to place so much confidence in the 
 workingman when dealing with his employer, 
 seems to contiol liis political life. His speech at 
 Newcastle-on-Tyne, in November, 1884, during 
 the Franchise Pill agitation, was worthy of the 
 primest American. " Enfranchise the people; 
 and after you have enfranchised the peoi)le, they
 
 ARBITRATION. 55 
 
 themselves are the best judges in what manner 
 they shall nse their power." 
 
 Mr. Mundella, in his public career, has given 
 his sympathy to the class from which he sprung; 
 at the same time he strongly discountenances any 
 preaching of the doctrine of antagonism between 
 capital and labor. He is emphatically a peace 
 advocate in labor struggles. By his own life and 
 experience he has demonstrated that violent 
 disputes between employer and workmen can 
 readily be dispensed with when both parties 
 exercise good judgment and fair play.
 
 CHAPTER V. 
 
 RISE AND DEVELOPMENT OF ENGLISH 
 INDUSTRIAL ARBITRATION. 
 
 TO the American student of industrial arbi- 
 tration, the history of English labor forms 
 the starting point for all theories, plans, 
 and argument concerning it. While the social 
 and political condition of working classes in 
 England in no way approaches that of the Amer- 
 ican workingman, there is no other country of 
 Europe, at the present time, where capital and 
 labor are nearer on a level. But it has been a 
 long and l)itter struggle to bring about this condi- 
 tion. English capital has been a severe task- 
 master. Cruel, powerful, and enslaving methods 
 have l)een its most common Aveapons; and it has 
 only been within the past score of years that 
 lal)or has received even a })ortion of its dues, and 
 then only has it been by that agitation which has 
 summ()n(Mi capital to the bar of i)ublic opinion to 
 hear the cliiinis and petitions of the wagewoi'kers.
 
 ARBITRATION. 57 
 
 By the power of co-operation, organization, and 
 arbitration, a repetition of the tyranny of past 
 years has been made impossible. 
 
 To read of the rise and development of the 
 principle of arbitration in England, is necessary 
 to a just appreciation of the principle itself. To 
 this end it is my purpose to present a succinct 
 statement of its progress. Mr. Weeks' Report 
 has been of much assistance in giving the present 
 relationship of voluntary arbitration and concili- 
 ation to labor; it is invaluable in studying this 
 question. 
 
 The beginning of the era of peace in the trade 
 disputes of English industry may be fixed in the 
 year 1860. It was in that year that Mr. Mundella 
 first made practical the theory of settling a labor 
 difficulty without a strike or a lock-out. The 
 hosiery and glove trade, with which he had been 
 long connected, is concentrated in Nottingham 
 and immediate vicinity. For years, almost cent- 
 uries, the struggles of violence were common 
 events between employers and employed. A not 
 unusual weapon of retaliation used by the work- 
 ingmen was to destroy the machinery of the 
 manufacturer. This violence, growing out of the 
 disputes of labor and capital, made it necessary 
 for Parliament to punish machine breaking with 
 death. In the year 1810 six persons suffered the
 
 1 
 
 58 ARBITRATION. 
 
 death penalty for tliis offense. From 1710, espe- 
 c-iallv, u}) to ISCtO, the condition of the relations 
 of labor and capital was that of contending 
 military forces. These were times of peace; but 
 these were seasons of truce rather than of good 
 feeling. In 1860 there were three strikes in the 
 hosiery trade; and out of the state of affaii's 
 resulting from these conflicts Mr. Mundella con- 
 ceived, and carried into practical operation, his 
 "Board of Arbitration and Conciliation in the 
 Glove and Hosiery Trade," mentioned in the 
 preceding chapter. 
 
 The rules adopted by his board thus created, 
 are a model of all that is desired in a peaceful 
 adjustment of disputes. They have been satis- 
 factory from the first, and have scarcely been 
 amended at all since their adoption. I deem 
 them of sufficient historical importance in this 
 matter of arbitration, to be given to the reader 
 entire, as the first successful basis for voluntary 
 arbitration in England. 
 
 1. That a board of trade be formed, to be 
 styled ''The Board of Arbitration and Concilia- 
 tion for the Hosiery and (Hove P)ranches. " 
 
 2. That the object of said board shall be to 
 arliitrate on any questions relating to wages that 
 may l)e referred to it from time to time by the 
 eiii|»l(»yei-s oi' operatives, and by conciliatory
 
 ARBITRATION. 59 
 
 means to interpose its influence to put an end to 
 any disputes that may arise. 
 
 3. The board to consist of eleven maiui- 
 facturers and eleven operatives. The operatives 
 to be elected by a meeting of the respective 
 branches. The manufacturers to be elected by a 
 public meeting of their own body. The whole 
 of the deputies to serve for one year, and to be 
 eligible for re-election. The new council to 
 be elected in the month of January, in each 
 year. 
 
 4. That each delegate attend the board with 
 full powers from his own branch, and that the 
 decision of the board shall be considered binding 
 upon the branch he represents. 
 
 5. That a committee of inquiry, consisting 
 of four members of the board, shall inquire into 
 au}^ cases referred to it by the secretaries. Such 
 committee to use its influence in the settlement 
 of disputes. If unable amicably to adjust the 
 business referred to it, it shall be remitted to the 
 board for settlement; but in no case shall the 
 committee make any award. The committee to 
 be appointed annually. 
 
 6. That the board shall, at its annual meet- 
 ing, elect a President, Vice-President, and two 
 Secretaries, who shall continue in office one year, 
 and be eligible for re-election.
 
 60 ARBITRATION. 
 
 7. That the board shall meet for the trans- 
 action of business once a quarter; viz., the first 
 ^londay in January, April, July, and October; 
 but on a requisition to the President, signed by 
 three members of the board, specifying the nature 
 of the business to be transacted, he shall, within 
 seven days, convene a meeting of its members. 
 The circular calling such meeting shall specify 
 the nature of the business for consideration, pro- 
 vided that such business has first been submitted 
 to the committee of inquiry, and left undecided 
 b}' them. 
 
 8. That all complaints submitted to the board 
 for their investigation be submitted in writing, 
 stating, as clearly as possible, the nature of the 
 grievance complained of; such statement to be 
 sent at least one week prior to the board meeting. 
 
 9. That, prior to any advance or reduction in 
 the rate of wages being considered by the board, 
 a month's notice shall be given in writing to the 
 Secretar3% that such change is desired. 
 
 10. That the President shall preside over the 
 meetings of the board, and, in his absence, the 
 \'ice-President; in the absence of both President 
 and Vice-President, a Chairman shall be elected 
 by a majority present. The Chairman to have a 
 vote, and in case of members being ecjual, tlie 
 Cliairinaii to have the casting vote.
 
 ARBITRATION. 01 
 
 11. That any expense incurred by this board 
 be borne equally by the operatives and employers. 
 
 12. That no alteration or addition be made 
 to these rules, except at a quarterly meeting, or a 
 special meeting convened for the purpose. Notice 
 of any proposed alteration shall be given in 
 writing one month previous to such meetings. 
 
 These rules, it will be observed, embraced the 
 principle of conciliation as well as arbitration. 
 The "committee of inquiry" of section 5, were 
 conciliators; their mission was similar to the 
 Bureau de Conciliation of the ConseAls des Prud'- 
 Jwmmes. The presiding officer gave the casting 
 vote in case of a tie; but that was changed after- 
 wards so as to leave the casting vote in the hands 
 of an umpire, who was selected from outside the 
 board by the members, when they failed to agree 
 among themselves. 
 
 While this Nottingham board was the first 
 successful permanent and systematic board of 
 arbitration in England, it must be said that 
 settlements in trade disputes had been made prior 
 to this; but most of the boards of these instances 
 were simply temporary committees for the special 
 dispute. Yet there were arbitration boards com- 
 posed of workmen and employers in many trades, 
 especially the Scottish. The Scottish Miners' 
 Association was founded in 1852. The object was
 
 I')2 AKHITHATION. 
 
 tlio jn'otection of miners' rights and privileges. 
 Tln'ir rules provided that " if at any time the 
 work or workmen tlierein find it necessary to 
 strike foi" an advance of wages, or from any other 
 cause, the district committee shall refer the matter 
 to a working arbitration." The rules are silent 
 as to the method of arbitrating. The most 
 sensible and conciliatory union of thirty years 
 ago was that of the Glasgow Tailors. That trade 
 has be(Mi remarkably free from strikes. I take 
 my view from their reports up to 1857. Nearer 
 to the Nottingham system of arbitration than 
 any other trade, seems the board of arbitrators 
 of the (xlasgow tailors. Their admirable pro- 
 visions for settling disputes are given in rules 11 
 and 21 of the union. These are as follows: 
 
 "This Society being established upon princi- 
 ples of strict justice, having for its object the 
 protection and furtherance of the interests of 
 both employers and employed, it is desirable that 
 all disputes which may arise between them 
 should l)e submitted to arbitration, as the most 
 speedy and equitable way of arriving at a con- 
 clusion: and it shall be the constant aim of the 
 Society to see that tliis desire be, as far as practi- 
 cable, carried out. * * * ]n the event of any 
 dispute arising, the men shall first reason the 
 matter with the employer; and, if unsuccessful,
 
 ARBITRATION. 03 
 
 tliev shall immediately thereafter inform the 
 committee of the same, who will use their best 
 endeavors to bri-ng about an amicable adjustment 
 of the case. -^ * * The arbiters shall consist 
 of an ec|ual number of employers and emplo3'ed, 
 whose decision shall be final, the disputants first 
 subscribing a minute of submission, binding 
 themselves to abide by the same, or an agreement 
 binding them to enter into a regular submission 
 when required, containing the usual clauses." 
 
 The Glasgow potters, up to 1860, were remark- 
 ably free from strikes. The last general strike 
 Avas in 1836, and was a terrible ordeal for manu- 
 facturers and workmen, and long recollected b}^ 
 the latter with dread. From reports to the 
 ■ National Association for the Promotion of 
 Science," which held its Fourth Annual Meeting 
 at Glasgow, in 1860, it is found that one of the 
 main causes of the absence of strikes in the 
 "potteries" is the yearly agreement between 
 workmen and employers as to arbitration. The 
 clause is as follows: "If any dispute arise be- 
 tween the parties as to the prices or wages to be 
 paid by virtue of such agreement, the dispute 
 shall be referred to an arbitration board of six 
 persons, to consist of three manufacturers chosen 
 by the masters, and three working potters elected 
 by the workingmen." Tlie success of this method
 
 64 ARBITRATION. 
 
 can be seen from the report to the Association: 
 "This arbitration clause has been much tried, 
 and has worked most successfully in ninety out 
 of one hundred cases."* In the long series of 
 struggles on labor disputes prior to 1860, we find 
 many instances of efforts at arbitration. I have 
 cited the foregoing as examples. The workmen 
 in a majority of cates favored a submission to 
 arbiters, thus showing a faith in the justice of 
 their claims. To the discredit of the masters, 
 they refused to submit their position to any such 
 investigation. 
 
 All this arbitration referred to was voluntary. 
 It was resorted to through the mutual action 
 of the employers and employed. As far as it was 
 tried it was satisfactory. The only instances of 
 successful settlements have always been of a 
 voluntary nature. 
 
 It was but natural that the agitation of such a 
 question should attract the attention of legis- 
 late )i-s and statesmen, and it was not long before 
 a l»ill was introduced into Parliament providing 
 for the establishment of tribunals to try labor 
 disputes. ^Ir. Mackinnon, M. P., in 1859 pre- 
 sented his " Bill for the Establishment of Courts 
 of Conciliation for tlie Adjustment of Differences 
 
 • See Report of the Committee on Trades Societies; Proceedings of National 
 Association for the Promotion of Social Science.— Lowdon, ISGO. 
 
 A
 
 ARBITRATION. 05 
 
 between Masters and Operatives," This provided 
 for a system of arbitration, but it was permissive 
 or voluntary as to the erection of such. And, 
 strange as it may appear in the light of subse- 
 quent history, the trade combinations of Sheffield 
 strenuously opposed its passage as being objec- 
 tionable, because its courts were voluntary and 
 not compulsory. When we reflect that afterwards 
 Parliament passed laws providing for legal arbi- 
 tration, and that under them no arbitration has 
 ever taken place, it only shows the fluctuating 
 view workmen often take of their position. 
 
 The Mackinnon Bill never passed. It was 
 objected to in the House of Lords; and thus the 
 first attempt to create a legal board to adjudicate 
 trade disputes in England failed. While the bill 
 was pending, and while the Social Science Con- 
 gress was in session at Glasgow expressing grave 
 doubts as to practical arbitration, Mr. Mundella 
 was quietly operating his own splendid method. 
 
 The Wolverhampton system of arbitration 
 and conciliation, so called on account of its first 
 aj)plication at that place, was adopted in the 
 building trades there about three years after the 
 Nottingham system was originated. Judge 
 Rupert Kettle, of Worcestershire, was the advo- 
 cate and principal supporter of this method of 
 arl)itration, and he has for years been a zealous 
 
 5
 
 66 ARBITRATION. 
 
 and able advocate of this peaceful contest of 
 labor and capital. 
 
 The building trades of Wolverhampton, Viki 
 all the rest of English trades up to the intro-^ 
 duction of arbitration, had been subject to coi 
 troversies as to wages and customs, which in| 
 variably resulted in strikes and lock-outs. Thj 
 last strike, which continued seventeen weeks, wj 
 in 1863, and it crippled the industries of th^ 
 town and vicinity very seriously. Capital wa^ 
 timid and feared to invest; labor was sullen and* 
 seeking revenge. The strike finallv terminated, 
 but signs of dissatisfaction and further trouble 
 \vere apparent at the beginning of the building 
 season of 1864. The citizens and tradesmen of 
 Wolverhampton, through the Mayor, finally called 
 a meeting of the workmen and employers, to 
 take into consideration the feasibility of settling 
 their disputes otherwise than through the medium 
 of a strike. The result of this meeting, which 
 was held on the 14th of March, 1864, was that 
 the carpenters appointed six delegates to meet 
 with six delegates of the employers, for the pur- 
 pose of settling the impending difficulties. A 
 week afterwards these twelve delegates met and 
 selected an umpire, who should have the deciding 
 vote in case of a tie on the questions before them. 
 The umpire chosen was Mr. Kettle, who was, U)
 
 ARBITRATION. 67 
 
 quote from one who knows him well, " remarkable 
 for very vigorous analysis and skilful unravelling 
 of complicated facts." His judicial temperament 
 and well known integrity inspired the disputing 
 parties with confidence in his adaptability to the 
 position. Briefly stated, the arbitration worked 
 to a charm. The award of the board was cheer- 
 fully accepted by masters and men; and the loss 
 of time, money, and contentment incumbent upon 
 every strike was averted to the great jo}^ of all 
 concerned. The Wolverhampton method was 
 worked out and systematized by Judge Kettle 
 without being acquainted with the features of Mr. 
 Mundella's Nottingham plan. It had some points 
 superior to the latter. For instance, one of the 
 distinguishing articles of Judge Kettle's method 
 was to select the umpire outside of the board. 
 He was a permanent standing arbitrator. This 
 was a decided advantage. A judge selected in 
 time of harmony will have the confidence of the 
 disputants much more than if he was selected 
 (hiring a pending discussion. Judge Kettle's 
 board formed a set of rules for each working- 
 establishment, and compliance with these rules 
 was the essence of the contract of hiring. A 
 radical weakness of the Wolverhampton method 
 was the absence of the conciliation feature in the 
 board. Upon tlie slightest dispute concerning
 
 68 ARBITRATION. 
 
 the rules, wages, or other matter, it was necessary 
 for the entire board to assemble and pass upon 
 the matter in dispute formally. It can be readily 
 seen that one of the most effective instruments 
 for peace between employer and employed, is the 
 conciliatory feature of arbitration. The powers 
 of conciliation, however, were afterwards added, 
 and, according to Judge Kettle, have been " found 
 in practice more useful than the arbitration 
 rule." 
 
 Both of these systems, the Nottingham and 
 Wolverhampton, advocated by Mr. Mundella and 
 Judge Kettle respectively, have formed the basis 
 for all the voluntary arbitration now in force in 
 England. The spirit of these systems has spread; 
 and now in the most important and wide-spread 
 industries of that country strikes are a relic of a 
 past barbaric era. If they are not entirely 
 abandoned, they are, at least, rarely heard of. 
 
 The iron industry of England is its staff of 
 industrial life. For' years the mill workers and 
 miners were so oppressed by the ironmasters that 
 a strike in an iron district was almost a civil war. 
 It meant lawlessness, vandalism, bloodshed, and 
 misery. This was especially so in the North of 
 England iron trade, to Avhich I have before 
 referred. For sixteen years the disputes of labor 
 and capital in the rolling mills of England have
 
 ARBITRATION. 69 
 
 been settled by arbitration, and it has been an 
 era remarkably free from strikes. The board of 
 arbitration for the North of England iron busi- 
 ness was, as all efforts of this kind usually are, 
 the outgrowth of a strike. It was formed on 
 March 22, 1869. It is a permanent institution, 
 and has the usual equal representation of em- 
 ployers and employed, as well as the conciliation 
 committee taken from the members of the board; 
 in truth, arbitration in its just and full applica- 
 tion must necessarily be about alike in all systems 
 and trades. Speaking of this board, Mr. Weeks, 
 in his report, says: "At the close of 1875, it 
 represented thirty-five works and 13,000 sub- 
 scribed operatives. These works had 1,913 pud- 
 dling furnaces — more than all Pennsylvania, and 
 half as many as the entire United States. During 
 the year 1875 the standing committee investigated 
 forty disputes. Since its organization there have 
 been eight or nine arbitrations on the general 
 questions of wages, and scores of references in 
 regard to special adjustment of wages at partic- 
 ular works." The awards of the board from 1869 
 to 1874 in fixing wages have been freely and 
 honorably accepted without a single repudiation; 
 and this has been uniform, both in the decrease 
 and the increase of wages. The justice and 
 necessity of a change of wages must have been
 
 70 ARBITRATION, 
 
 ver}^ apparent to the board before an alteration 
 would be decided upon. 
 
 A similar board was organized in the South 
 StafFordshire iron business, but it did not prove 
 as effectual for good as that of the North of 
 England. This was owing to a dispute between 
 trade unionists and outsiders. The labor parties 
 represented undertook to deny admission to the 
 board of non-unionists, and as a result it failed. 
 The right principle in arbitration makes no dis- 
 tinction between labor of au}^ kind; if that is not 
 done, and the formation of the arbitration tribu- 
 nal is to be controlled by trade unions, it ceases 
 to have that feature of independent justice neces- 
 sary to success. Since the failure of the first 
 attempt on a trade union basis, there was organ- 
 ized in 1875 "The South StafFordshire Iron Trade 
 Conciliation Board," with the objectionable points 
 of the old board left out. It has operated with 
 success. In October, 1878, the market required 
 the usual reduction of wages, which the board 
 ujx)n careful examination decreed. The award, 
 although bearing hard on the workmen, was con- 
 scientiously — of course not cheerfully — abided 
 by. And prior to and since that time, there were 
 the usual reductions and increase of wages fol- 
 lowing the fluctuations of the market, I mention 
 these large reductions of wages because they have
 
 ARBITRATION. 71 
 
 been the motive powers of causing strikes in tlie 
 past history of English labor. At the present, in 
 the manufacturing regions of England where 
 these boards of arbitration are in vogue, the 
 struggle of labor against capital is made before 
 these tribunals; it is a struggle of reason and 
 sense. And although it is sometimes decided 
 against the workmen, the award is acquiesced 
 in. Advantages are often gained by both parties 
 that could never be realized from a strike or 
 lock-out. 
 
 In the English coal regions of Northumber- 
 land and Durham, and in the South Wales dis- 
 tricts, the peaceful method of settling trade 
 disputes has been applied with much success. 
 Attempts at arbitration have been made in other 
 districts, with not very brilliant results. These 
 attempts were made frequently before the syste- 
 matic arbitration now adopted came into vogue. 
 In most of these instances eflPorts at arbitration 
 have been made by the men, and as often refused 
 by the operators. Notably in the West Yorkshire 
 coal strike and lock-out as far back as 1858, wlien 
 the miners offered to submit to arbitration, and 
 the employers not only declined, but refused an 
 interview to the miners' representatives. And in 
 the strike of the Scottish miners the same thing 
 was done. Prior to 1873 the rejected efforts at
 
 72 ARBITRATION. 
 
 arbitration in the coal trade were caused by the 
 mine owners and masters. But there has been a 
 vast improvement in the public sentiment of 
 operators on this question within recent years. 
 Mr. Weeks reports that in the Northumberland 
 coal region, wages and other matters of dispute 
 have been settled by arbitration. Since 1873, 
 under the promotion of Judge Kettle, a syste- 
 matic board has been in operation. Mining 
 customs are the principal subjects of discussion 
 next to wages. A very successful arbitration was 
 accomplished in the Northumberland district in 
 1877. In May of that year the operatives received 
 notice from their emplo3^ers that there would be a 
 reduction of wages, and that they would no longer 
 be allowed a free house and free coal. The resuh 
 was, twelve thousand out of fourteen thousand 
 miners struck. They were very bitterly opposed 
 to arbitration, and withdrew their confidence from 
 such of their leaders as favored it. Afterwards 
 the parties agreed to arbitrate, and the strike was 
 broken l)y the award of a board of arbitration, 
 over which a })rominent member of Parliament 
 presided as umpire. In Durham, and other parts 
 of England, there have been arbitrations in the 
 coal trade which have proved boons to the work- 
 men. A careful examination of the reports on 
 the results of the trade tribunals to try industrial
 
 ARBITRATION. 73 
 
 disputes in this braiicli of English labor, shows 
 some queer facts. '^ In some quarters it seems 
 that the intellectual capacity of the workmen is 
 not yet high enough to abandon the brutal 
 methods of a strike. Where they have arbi- 
 trated, it is with reluctance that they have 
 accepted awards; in some instances they have 
 openly repudiated them. But it can be truth- 
 fully said, however, that these cases have been 
 rare. 
 
 In many other instances the system of arbi- 
 tration and conciliation has been successfully 
 applied. The lace trade of Nottingham is con- 
 trolled by a board formed on the plan of the 
 hosiery trade at the same place. It is a per- 
 manent court of arbitration, and has met the 
 warmest expectations of its founders. The 
 moving sentiment among the trade unions, as 
 
 *In South Yorkshire and North Derbyshire Mr. Mundella has arbitrated 
 a number of disputes the present year. At Barnsly an eight months' strike 
 was settled by Mr. Whitewell and Mr. Mundella. Tliere have been successful 
 arbitrations in the coal trade at Ashton, Oldham, North Staffordshire, Cleve- 
 land, North of England, and Lancashire. In South Staffordshire a sliding 
 scale was adopted in 1874. but its working was not satisfactory, owing to a 
 decline in coal being much greater than was expected. At Kadstock there 
 have been two awards, one by Mr. Mundella and the other by Mr. Thomas 
 Hughes, M. P. In North Wales there have been several arbitrations. In all 
 these cases there has seemed to be an earnest desire on the part of the leaders 
 of the unions to hold men to the awards, telling them that they were bound 
 in honor, and threatening to withdraw from their positions if the men were 
 false to their word. The Welsh colliers are rough, uneducated men, however, 
 and have forgotten honor and interest, and rejected awards that have been 
 made; and at present arbitration is not practiced in this district.— U'cet*-' 
 Report on English Arbitration, December, 1S7S.
 
 <4 ARBITRATION. 
 
 well as the capitalists, is that the time of strikes 
 is past. Their conclusions are heing proved by 
 the fact, that every trade union in England 
 indorses arbitration, and that capital is sub- 
 mitting to trial at the tribunals where labor has 
 an equal voice with its employer.* 
 
 Arbitration in England that has been written 
 of herein has been purely voluntar}^ arbitration. 
 The sj'stems advocated and established by jNIr. 
 Mundella and Judge Kettle are extra statu to r3\ 
 But within a few 3'ears acts have been passed 
 which have been intended to further and aid 
 voluntary arbitration. The first of these, by 
 Lord St. Leonards, was passed in 181)7. It 
 operates only when called into being by the 
 Justice of the Peace, and there is no |)erraanency 
 in the board so created. Unlike the Mackinnon 
 Bill of 1859, it is compulsor}'. No cases of arbi- 
 tration have been reported under the act, and it 
 is practically obsolete. The law of 1872, by Mr. 
 Mundella, known as "The Arbitration (Masters 
 and Workmen) Act, 1872," is practically an effort 
 to enforce the awards arrived at by voluntary 
 arbitration, and makes binding on all parties the 
 agreements entered into by them. In the " Mem- 
 orandum " the uses of the act are summarized, 
 
 which 1 quote as follows: 
 
 i 
 
 *See Ai'i'ENDix I.
 
 ARBITRATION. 75 
 
 ''1. To provide the most simple machinery 
 for a binding submission to arbitration, and for 
 the proceedings therein. 
 
 " 2. To extend facilities of arbitration to 
 questions of wages, hours, and other conditions 
 of labor, also to all the numerous and important 
 matters which may otherwise have to be de- 
 termined by justice under the provisions of the 
 Master and Servant Act of 1867. 
 
 " 3. To provide for submission to arbitration 
 of future disputes by anticipation, without waiting 
 till the time when a dispute has actually arisen, 
 and the parties are too much excited to agree 
 upon arbitrators." 
 
 I infer from the expressions of the press, and 
 from the experience of those interested, that the 
 cause of arbitration in England has been but 
 little advanced by Parliamentary legislation. 
 That most powerful of all statutes, the public 
 sentiment of the working people, has given it its 
 present firm and advanced position. The view 
 of Professor Jevons, that arbitration should be 
 free from the law and lawyers, seems to be the 
 opinion of the practical adherents of voluntary 
 arbitration. I am not certain but that they are 
 correct. Not that the "law or lawyers" will be 
 of any injury, but in the large majority of cases 
 of arbitration between capital and labor, both
 
 7G ARBITRATION. 
 
 parties are usually execution-proof. It deals 
 purely with the acts of men; and no law can be 
 passed to compel men to do something they do 
 not want to do. In voluntary arbitration the 
 force of honor and sentiment, public and private, 
 is the only Avrit that can execute an award. 
 
 The history of English voluntary arbitration 
 is full of lessons to the American workingman. 
 It appeals to all the self-interest as well as the 
 manhood of the American manufacturer. The 
 experience of the past quarter of a century has 
 demonstrated that all the difficulties which arise 
 between capital and labor are capable of a just 
 and inexpensive solution. That under the in- 
 fluence of a sentiment which opposes strikes, and 
 favors a fair submission to arbitration, the social, 
 political, and financial condition of the emplo^'er 
 is far advanced al)ove what it was thirty years 
 ago.
 
 CHAPTER VI. 
 
 VOLUNTARY ARBITRATION IN THE UNI- 
 TED STATES. 
 
 FIFTEEN 3^ears ago the English representa- 
 tive at Washington, in a report to his own 
 government on the condition of labor in 
 this country, wrote as follows: 
 
 "There are few countries in which the work- 
 ingman is held in such repute as in the United 
 States of America. 
 
 " The laboring classes may be said to embrace 
 the entire xVmerican nation. 
 
 '' Every man works for a living, follows a 
 profession, or is engaged either in mercantile or 
 industrial pursuits. 
 
 "The prosecution of the humblest calling acts 
 as no bar to promotion in the social scale. 
 
 "The lowl}^ citizen of to-day may aspire to 
 Presidential honors to-morrow."* 
 
 * Reports Respeetiug the Condition of the Industrial Classes in Foreign 
 Countries. Presented to both Houses of Parliament by Her Majesty's Com- 
 mand.— Lo/ido/i, 1S70.
 
 78 ARBITRATION. 
 
 The most intense American could not state 
 more happily the truth concerning our people in 
 a less number of propositions. The expression 
 that the American nation is one of laborers is 
 emphatically true. There is no permanent class 
 in this country but the laboring class. All our 
 people derive their origin from workers of muscle 
 and brain — from those who in 3'ears gone by 
 cleared awa}' the forests, and planted in virgin 
 soil the seeds of what has grown to be a tremen- 
 dous testimony to human genius and skill, or 
 from those of later growth and arrival, who have 
 brought from other lands elements of strength 
 that have helped to build up our nationalit3\ It 
 is true that wealth and capital have grown up 
 among this great people, but they came from labor 
 and lal)or's earnings. No royal road to position, 
 wealth, or i)Ower is found in this republic, where 
 every num is the peer of his brother. The only 
 aristocracy that will stand is the aristocracy of 
 intellect. The voice of labor, when it sends forth 
 its demands in the " parliament of man," is just 
 as powerful as the capital for which it works. 
 When it fails to obtain the rights due it under 
 justice and the law, the fault is not with the 
 people. There is no country in the world where 
 there is less excuse for the workingman laboring 
 under unjust disadvantages than in the United
 
 ARBITRATION. 79 
 
 States. Here, as a part and factor of the " j)Owers 
 that be," he should be the last to allow himself to 
 be deprived of his rights. 
 
 And yet we find, as in the old world, whenever 
 there is a clash between money and muscle, the 
 latter is generally worsted. This is not due in 
 any manner to our laws, sentiment, or institu- 
 tions, but rather to a failure of the methods 
 adopted by organized labor in its conflicts with 
 capital. The law which in the wager of battle 
 makes a victor of the stronger, gives capital the 
 advantage in a mere struggle for vantage ground 
 where endurance and mone}^ are the only weapons 
 used. As long as American labor has no other 
 way by 'which it can enforce its claims but by 
 strikes, just so long will it be at the complete 
 mercy of capital. And as long as the manu- 
 facturer, mine operator, and mill owner refuse to 
 listen to the argument of labor, thus long will 
 they find an enemy in the workingman. 
 
 Capital must learn to live not for profit alone, 
 but should remember that labor is its handmaid, 
 and profit at the unjust expense of the emplo^-ed 
 is a moral as well as a social crime. Labor has 
 much to learn also: the first is, that to struggle 
 with capital when the choice of weapons is left to 
 the latter, is a folly and will always be a failure. 
 Labor, by the equity of humanity, should be
 
 80 ARBITRATION. 
 
 willing to accept decreased wages with decreased 
 profits, and the employer should be equally just 
 by paying increased wages with increased profits, 
 provided alwa3^s that the increase or decrease 
 of profits is not the result of unhealthy competi- I 
 tion. Just and safe as this method may appear, 
 it never enters into the relationship of employer 
 and employed. This consideration by the 
 workers of labor and capital, with the advan- 
 tages and depressions of trade, will have its 
 fullest and fairest application under a system of 
 arbitration. 
 
 The principle of appealing to the judgment, 
 intelligence, and fair play of a tribunal, without 
 the ceremony or technicalities of the courts, is 
 peculiarly adapted to the American workingman. 
 And it is strange that a greater number of peace- 
 ful settlements of trade disputes in this manner 
 has not been made. One reason is that there is 
 being sowed almost daily seeds of poison among 
 the American working classes. Those professional 
 labor agitators who })reach that there is an eternal 
 and irrepressible antipathy between capit-al and 
 labor, are the worst enemies of arbitration and 
 the workingman. In the same ranks, and with 
 the same doctrine, is the Anarchist, the Socialist, 
 and the Communist — he of whom Ebenezer 
 Elliott, the Corn Eaw rhymer, satirically sung:
 
 ARBITRATION. 81 
 
 " What is a Communist? One who hath yearnings 
 For equal division of unequal earnings; 
 Idler or bungler, or both, he is willing 
 To fork out his penny and pocket your shilling." 
 
 Their wild Utopian schemes are seductive 
 beside the plain business proposition of compro- 
 mise. They urge strikes when there is no ground 
 for differences beyond sentimentalism, and they 
 find folloAvers too. There is a romance and 
 daring similar to war, that makes strikes par- 
 tially seductive. They are " fighting capital," a 
 shibboleth which, in the mouth of a workingman 
 who never works, is a powerful incentive to his 
 brother who toils and sweats for his bread, to 
 conjure up his wrongs and "go out." The 
 liberty of speech, of press, and of action have 
 all been exhausted in sustaining strikes, and 
 arbitration in its systematic character, as applied 
 in England, has had but a limited history in the 
 United States. In this omission the injury has 
 been to the industrious labor, which has paid 
 dearly for it. 
 
 The idea of making an effort for a peaceful 
 solution of our disagreements is almost intuitive 
 to an intelligent man. The principle of co- 
 operation for self-protection is equally so. And 
 every feeling of confidence in the justness of our 
 cause would lead us to submit our disputes to
 
 82 ARBITRATION. 
 
 some honest tribunal, rather than to the dan- 
 gerous and uncertain wager of battle or physical 
 endurance. That principle works broader and 
 better in this' country than in England; Ave are 
 emphatically a peaceful court-settling people. 
 The first instinct of an American is to co-operate 
 with his fellows, when all desire the same end; 
 his next is to submit to the will of the majority 
 or the court. 
 
 The history of industrial arbitration in the 
 United States is very short. There has been no 
 general effort towards the establishment of per- 
 manent and «3'stematic boards of voluntary arbi- 
 tration, but the principle shows itself in various 
 trades and under various circumstances. For 
 years there has existed in New York a society 
 called the Working Woman's Protective Union. 
 Its object is "to stand between the- woman who 
 unaided is battling in- the world for a living, and 
 those who would defraud her of what she has 
 honestl}^ earned; to encourage and sustain her in 
 this desire to support herself and others who may 
 be dependent upon her, and further to open up 
 new fields of labor and thus relieve those depart- 
 ments of industry now overcrowded." It has no 
 arbitrative functions, but I refer to it as an 
 instance of a powerful mediator between employer 
 and em[)loyed. It has uniformly prevented
 
 ARBITRATION. 83 
 
 strikes and lock-outs by referring, in the name 
 of the working woman, to the courts for pro- 
 tection; and, as a result, this method of arbitra- 
 tion, forced and imperfect as it is, has settled 
 within sixteen \'ears 1,600 disputes, and $30,000 
 have been recovered from employers who sought 
 to impose upon their hands, and this, too, with- 
 out the cost of a cent to the women themselves. 
 Its official statements claim that the greatest 
 accomplishment of the Protective Union has 
 been the simple fact of its existence. The 
 knowledge of the working women and their 
 employers, that there was a place of protective 
 resort where fair play could be had, dissipated 
 again and again the possibilities of conflict and 
 wrong. 
 
 The first and most notable instance of perma- 
 nent and systematic voluntary arbitration in the 
 United States is that connected with the cigar 
 manufactory of Straiton tt Storm, of New York 
 City. This establishment, employing over two 
 thousand workmen, has since 1879 settled all its 
 disputes with its employes through a board of 
 arbitration. The question of wages, which is 
 always a difficult one for boards to handle, has 
 been successfull}' arbitrated by this board time 
 and again. The tribunal which constitutes this 
 voluntary court of capital and labor is composed
 
 84 ARBITRATION. 
 
 of fourteen members.* The firm is represented 
 by two of its members and five foremen; and the 
 workmen by three hand workmen, two rollers, one 
 bunch maker, and one packer. Thus it is that 
 all the various interests of the employed are 
 represented on the board. Since January, 1870, 
 the operation and results of the board of arbitra- 
 tion have been of remarkable fairness and suc- 
 cess; and the language of the employers, in a 
 letter to the writer, after five years of practical 
 trial, is, " That the principle of arbitration and 
 the results following therefrom have proven ad- 
 vantageous to both ourselves and our employes, 
 far beyond anything that we had hoped from it, 
 at its inception." Like the boards at Notting- 
 ham and the other parts of England, the court 
 of arbitration has not only served to settle dis- 
 putes, l)vit it has brought employer and workmen 
 together and developed in each a better humanity 
 and a desire to do justice to each other. The 
 history of the JStraiton & Storm board of arbitra- 
 tion can be summed up in the single word, 
 success; and it has, from the statements of the 
 workmen, been a social and moral as well as a 
 financial benefit. Its record is a standing and 
 unanswerable argument against those who claim 
 that arbitration in trade disputes is impracticable. 
 
 *See ArPENDix II.
 
 ARBITRATION. (S5 
 
 It will be observed that this exists under or by 
 virtue of no law, but is strictly voluntar}^ — the 
 mutual creation of the workmen and their em- 
 ployers. Its awards are intended to be fair and 
 honest, and in no instance have they been re- 
 pudiated. 
 
 The extensive and important industries of 
 mining and iron manufacturing in the State 
 of Pennsylvania have called into operation the 
 principle of arbitration more frequently there 
 than elsewhere in the Union. Various attempts 
 have been made to arbitrate disputes between 
 employers and workmen in the coal trade of that 
 State, but owing to a lack of mutual desire for 
 peaceful settlements on both sides they have not 
 been successful. The same can be said of the 
 iron trade. 
 
 Since 1878, through the efforts of Joseph D. 
 Weeks of Pittsburgh, whose report on voluntary 
 arbitration in England has made him the pioneer 
 advocate of that system in this country, popular 
 sentiment, both of capitalists and workmen, has 
 surely drifted to a favorable consideration of 
 arbitration. The reason of the general failure 
 of efforts at arbitrating in Pennsylvania has been 
 due principally to the fact that there was no 
 system in the boards; and again they were 
 usuallv selected and created during a strike, or
 
 86 ARBITRATION. 
 
 impending a dispute. The contestants were in 
 no mood for a peaceful settlement of their 
 troubles. It was like embassadors of peace 
 coming on a battle field, and seeking to arrive at 
 terms amid the smoke and din of conflict. Suc- 
 cessful arbitration must have boards that are 
 pre-existing to a strike. This difficulty has been 
 provided for by recent legislation. The law 
 popularly known as the '' Wallace Act," on ac- 
 count of its author, William A. Wallace, of 
 Clearfield, which became a law April 30, 1883, is 
 the first piece of legislation in this country prac- 
 tically grasping the principle of voluntary arbi- 
 tration. It provides for the creation of tribunals 
 of arbitration in the iron, steel, glass, textile 
 fabrics, and coal trades. The law simply gives 
 ofiicial birth to the tribunal, and invests it with 
 power of investigation of disputes where they 
 are voluntarily submitted. It is unquestionably 
 the first effort at systematic arbitration ever 
 proposed in this country. In its operation and 
 effects it has, where it has been fairly tested, 
 proved of decided advantage."^ Of course, the 
 submission of all (juestions under this law being 
 purely voluntary, and the awards having no legal 
 or compulsory force, its principal value is in 
 giving character, ofiicial bearing, and system to 
 
 *See Appkndix III.
 
 ARBITRATION. 87 
 
 tribunals acting under it. Its sessions and pro- 
 ceedings are under the eye of the public. 
 
 In Ohio there have been various attempts at 
 arbitration, but they have generally been during 
 a strike, or in a fixed and passionate dispute. 
 There has been no systematic efibrt made to 
 advance the principle until very recently. 
 
 In 1874, in the Tuscarawas Valley, arbitration 
 between the miners and operators was attempted, 
 the full proceedings of which are recorded by the 
 Mine Inspector in his report for 1876. The 
 Miners' National Association, to prevent a strike, 
 proposed a settlement'' by arbitration. It was 
 willingly entered into, and the award made, 
 which satisfied all, but was disregarded by one 
 leading coal company, and the arbitration was a 
 failure. In 1882, according to the Report of the 
 Bureau of Labor Statistics, successful arbitration 
 was accomplished in the shoe trade at Cincinnati. 
 A voluntary board of arbitration, similar to that 
 of Straiton & Storm, of New York, was organized 
 by employers and emploj^ed; and it is stated that 
 it successfully settled differences in work and 
 wages during its existence. 
 
 On February 10, 1885, the Legislature of Ohio 
 passed without a dissenting vote, a bill prepared 
 and introduced by the writer, providing for the 
 creation and operation of tribunals of voluntarj'
 
 88 ARBITRATION. 
 
 • 
 
 arbitration.* The law contains the successful 
 features of voluntary arbitration as practiced in 
 England and on the Continent. While its opera- 
 tions are purely voluntar}-, it affords a cheap, 
 honest, and effective method for settling trade 
 disputes without strikes or lock-outs. Its semi- 
 official character makes it partly a public board 
 or institution. The Ohio law, while modelled 
 after, is essentially different from, the " Wallace 
 Act" of Pennsylvania, in many respects. The 
 most important difference is that the awards of 
 the board are binding, in honor, upon the parties 
 thereto without their subsequent ratification. 
 They pledge themselves, in Ohio, upon the sub- 
 mission of the question, to abide by the award; 
 in Pennsylvania it requires an acceptance before 
 the award is binding. As yet there has been no 
 practical application in Ohio of the law; but it 
 must be said that no occasion has arisen whereby 
 the law could be tested. Certainly, with Penn- 
 sylvania, Ohio is most in need of the application 
 of the peace principle in labor disputes. The 
 conflict in the Hocking Valle}^ crippled the capital 
 of the State, and almost beggared the labor of 
 that region. The cost, yet unknown and uncal- 
 culated, will equal the tax duplicate of a great 
 city. 
 
 •See Appendix IV. 
 
 1
 
 ARBITRATION. 89 
 
 Ohio has too many interests at stake to over- 
 look the fatality of strikes. The question of how 
 to best give labor and capital, within her border, 
 a " fair field and no favor," is of the highest 
 importance to the State. By the census of 1880, 
 she had 20,699 workshops, and in them there was 
 employed 173,609 workers; her labor thus em- 
 ployed were paid $62,000,000 annually, and the 
 capital invested to employ these hands and pay 
 such wages amounted to $189,000,000. Her coal 
 measures include an area of nearly 11,000 acres, 
 and the yearly production therefrom averages 
 6,000,000 tons. Her average annual production of 
 iron ore is nearly 200,000 tons, and in 1880 nearly 
 550,000 tons of pig-iron was manufactured within 
 her boundaries. Can it be said that Ohio is not 
 interested in avoiding trade disputes? And is 
 not arbitration a vital question to her industries, 
 her capital, and her labor? 
 
 Yet, notwithstanding the immense value that 
 a system of arbitration would be to the industrial 
 capital of the United States, its practical applica- 
 tion has been decidedly limited. But as years go 
 by, and time and experience develop the futility 
 of strikes in bringing benefit to labor, the ob- 
 serving non-combatants sustain the doctrine that 
 peaceful arrangement of disputes is as desirable 
 and reasonable among men as between nations.
 
 90 ARBITRATION. 
 
 There is a large, intelligent, and influential 
 element of citizenhood in this country that, upon 
 questions affecting the working masses, exercise a 
 most potent and widespread influence. I refer to 
 the trades unions of the United States. No 
 movement, be it worthy or unworthy, can for an 
 instant be advanced among the working people 
 unless it has their approval. Therefore it be- 
 comes a pertinent and necessary question, to ask. 
 What will the trades unions do upon the matter 
 of voluntary arbitration? Will they oppose it'.^ 
 Do they approve it?
 
 CHAPTER \^ I 
 
 TRADES UNIONS AND ARBITRATION, 
 
 AT.L men have a right to combine for the 
 accomplishment of an end just and bene- 
 ficial to those co-operating for that pur- 
 pose and not against the well-being of society. I 
 am not a member of, nor in any way connected 
 with trades unions, but I understand and am 
 satisfied, that their ends are legitimate, just, and 
 necessary. There may have been in their history, 
 and there undoubtedly has been, disorder, injus- 
 tice, and crime associated with their membership, 
 but they are to be held no more responsible for 
 such, than political meetings and associations are 
 for violations of law which often attend them. 
 The evil that is in them is not from them, nor 
 of them. 
 
 "In their essence, trades unions are voluntary 
 associations of workmen for mutual assistance in 
 securing generally the most favorable conditions
 
 92 ARBITRATION. 
 
 of labor. This is their primary and fundamental 
 object, and includes all efforts to raise wages or 
 resist a reduction in wages; to diminish liours 
 of labor or resist attempts to increase the working 
 hours; and to regulate all matters relating td 
 methods of employment or discharge, and mode 
 of working. They have other aims also, some of 
 them not less important than those embraced in 
 the foregoing definition; and the sphere of their 
 action extends to almost every detail connected 
 with the labor of the workman and the wellbeing 
 of his everyday life."* 
 
 Both employer and employed have a perfect 
 right to combine to further their interests, pro- 
 vided that neither interfere with the just and 
 honest sphere of the other. The co-operation 
 and organization of labor dates from early his- 
 tory, and such organizations have been recom- 
 mended by the past years of experience. The 
 trades unions have been an unquestioned benefit 
 to workingmen in the past. At no time have 
 their uses and influence been more necessary 
 than at tlie present day. When labor and capital 
 approach terms of peace and friendship, the more 
 useful will be the trade union to each. Contrary 
 to the impressions of numy, there has been no 
 more active force in society than trades unions, in 
 
 ♦Conflicts of Labor anrl Capital.— Geo)-.ffe Howell, p. l/,7.
 
 ARBITRATION. 03 
 
 advocating and sustaining the system of peaceful 
 arbitration between workmen and employers. 
 The wide spread notion that they are composed 
 of disturbing and capital-hating demagogues is 
 simply a popular delusion. The principles and 
 actions of trades unions, when investigated and 
 studied, clearly prove this. 
 
 In England they have been the warmest ad- 
 vocates of arbitration. It is an article of the 
 constitution of almost every labor association in 
 Great Britain, to advocate in every dispute a 
 submission to peaceful adjustment; and it is this 
 influence that has made voluntary arbitration a 
 settled question and a practical institution in 
 England. 
 
 The President of the Trades Unions' Congress, 
 which represented in 1877 nearly 700,000 mem- 
 bers at its session that year, in his address said: 
 "The principle of appeal to facts and reasons 
 instead of brute force is rational, and at once 
 commends itself to the judgment of men. There 
 is no wonder, therefore, that the principle of 
 arbitration for settling disputes has grown very 
 rapidl)'. In the hosiery trade in the midland 
 counties, we were among the first who adopted it, 
 and we do not regret having done so. The work- 
 men have sometimes had adverse decisions; but 
 on the whole it has worked better than the old
 
 \)4 ARBITRATION. 
 
 mode. It is gratifying to find tliat tlie workmen 
 generally are the first to adopt this intelligent 
 and enlightened system. In some disputes which 
 have arisen in the country, notably the West 
 Lancashire strike, the employers refused to sub- 
 mit to arbitration, although the men suggested it 
 on three occasions. My own experience as a 
 member of one of these boards has led me to this 
 conclusion: if a board be properl}^ constituted, 
 and proper arrangements are made to give pub- 
 licity to the facts of a case, the result generally 
 will be a righteous award. I was glad to hear 
 that the National Miners' Union have decided to 
 offer arbitration in every dispute, and it forms a 
 part of their rules. It is a rational arrangement, 
 and it would be a good thing if all would adopt 
 it. I think, too, arbitration boards should be 
 open to the press and the public. Workmen 
 have nothing to fear from either the one or the 
 other. We want right and justice to rule, and 
 we are not afraid of publicit}'. When men and 
 employers gather round a board to talk over 
 differences and try to adjust them, they give 
 evidence of their manhood. Beasts and reptiles 
 fight and tear each other, and carry out the law 
 of the strongest, but men reason and think, and 
 by this means show their dignity, and arrive at 
 nmch better conclusions and far less costly.
 
 ARBITRATION. 95 
 
 Boards for settling disputes would not do away 
 with unions; they would still be needed, and 
 under increased necessity to enforce the decision 
 of the board when given in favor of the work- 
 men." 
 
 At the present time it is estimated that in 
 England there are 800,000* members of trades 
 unions. Their almost unanimous voice is for 
 arbitration in industrial pursuits. And it is a 
 fact in the history of arbitration, that the initia- 
 tory steps towards this peaceful method was 
 inauguiated by the trades unions. 
 
 In the United States the same sentiment pre- 
 vails among trades unions in relation to arbitra- 
 tion. The number of members is much greater 
 in this country than in England, but no authori- 
 tative estimate can be given. However, every 
 labor organization in the United States, with the 
 remarkable exception of one, openly advocates 
 and recommends arbitration in preference to 
 strikes or lock-outs. The exceptional case is the 
 Amalgamated Association of Iron and Steel 
 Workers, an organization of wide spread influ- 
 ence and large membership. Their objection, 
 though, is not to the principle of arbitration, but 
 rather to its practical application. The Knights 
 
 * Trades Unions; Their Origin and Objects, Influence and EfBcacy.— Wm. 
 
 Trail t, London, ISSt,.
 
 tin ARHITRATION. 
 
 of Labor, tlie most powerful and numerous labor 
 organization in this country, has for one of its 
 cardinal principles the expression of confidence 
 in just arbitration, and always recommends its 
 ai)})lication in place of a strike. So it can be 
 safely said that in the trades unions of the United 
 States tribunals of arbitration will find a friend 
 and supporter. 
 
 The trades unions are a powerful assistant to 
 honest and thorough arbitration, as well as to 
 a just examination of the dispute. Their syste- 
 matic method of collecting and preserving the 
 statistics of labor makes the information within 
 their knowledge very important. They are the 
 natural channels to direct the arguments and 
 force of the figures of wages before a tribunal 
 of arbitration. Again, they are invaluable as one 
 of the influential factors in preventing the re- 
 pudiation of an award. The experience of the 
 past iias shown that there has been less repudia- 
 tion of awards by workingmen than by em- 
 ployers and capitalists. This is largely due to 
 the obligations of honor promulgated and sus- 
 tained by the discipline of the trades unions. 
 Judge Rupert Kettle, whose experience in arbitra- 
 tion has l)een referred to, says that he has found 
 in the trades unions a most valuable adjunct to 
 popular sentiment in confirming and accepting
 
 ARBITRATION. 97 
 
 an award. The same can be said of the trades 
 unions in this country. 
 
 I have dwelt at length upon the relations 
 of trades unions to arbitration because there is a 
 wide spread and delusive idea prevalent among 
 many that they are opposed to it, and their prin- 
 cipal object is to foment strife and encourage 
 strikes. Such is not so. And if capital will join 
 hands with organized labor, the day of strikes 
 and battles between employer and employed is 
 gone forever before the peaceful and sensible 
 reign of arbitration. And in doing this the man 
 of money will lose none of the legitimate control 
 of the results of his genius and thrift; and the 
 man of labor will elevate himself into the domain 
 of a broader and better humanity.
 
 APPENDIX.
 
 APPENDIX I. 
 
 ARBITRATION IN THE ENGLISH TRADES. 
 
 The following report on English arbitration 
 was made by Alsager H. Hill, L. L. B., of London, 
 to the Massachusetts Bureau of Labor Statistics, 
 in 1877. It is of interest as showing the condi- 
 tion of the various trades at that time with 
 reference to the principle of arbitration and 
 conciliation. 
 
 According to the record of Mr. Crompton, the English 
 working classes have given the most favorable reception 
 to the proposal for courts and boards of arbitration and 
 conciliation. As far back as 1866, Mr. George Odger 
 introduced the subject of arbitration at a large meeting in 
 Sheffield, and then expressed the opinion that strikes were 
 to the social world what wars were to the political world — 
 they became crimes unless they were prompted by absolute 
 necessity. Where industries are not localized, but, on the 
 contrary, scattered over the country, arbitration arrange- 
 ments necessarily become more difficult. In the more 
 highly organized of these trades, the question of wages 
 is not so often raised by arbitration, and in some, very 
 slight alterations have taken place in a long series of years.
 
 102 ARBITRATION. 
 
 The engineers have, as in the case of the nine hours' strike 
 at Newcastle, in 1871, so ably recorded by Mr. John 
 Burnett, the Secretary of the Amalgamated Engineers, been 
 willing to submit questions in dispute to arbitration ; but 
 the great variety of operatives employed in this industry 
 makes the system more difficult to adjust satisfactorily. 
 Mr. John Burnett has, however, expressed his opinion that 
 " a scheme of arbitration might be arranged so as to apply 
 to the various peculiarities of the engineering trade." 
 
 The brassworkers have made an experiment in arbitra- 
 tion, but it does not seem to have been successful. 
 
 At Sheffield the employers did not seem disposed to 
 meet the overtures of the men, who, through the carpenters, 
 desired to form a board. 
 
 The bricklayers cannot be reported as having distinctl}"^ 
 pledged themselves to the system of arbitration ; but Mr. 
 Coulson, the Secretary of the Operative Bricklayers' Society, 
 has endeavored to establish boards as opportunities have 
 arisen. 
 
 The masons have not as a class shown so strong a 
 desire for arbitration as the other classes of building 
 operatives ; and, in the language of Mr. Crompton, " they 
 have a conservative tenacity which tends to prevent them 
 from changing some practices which cannot stand the test 
 of criticism." At Bristol, however, a code of rules has been 
 drawn up between the Master's Association and that of the 
 Operative Stone Masons. One rule provides that " six 
 employers and six operatives act as a standing committee 
 to hear and determine any minor disputes that may arise 
 from time to time as to the intention and working of the 
 rules, and their decision shall be equally binding on both 
 parties, and no suspensions of labor shall take place 
 pending the decision of the conciliation committee."
 
 ARBITRATION. 103 
 
 Among painters, though there is no permanent board 
 in the trade, a code of working rules was established at 
 Manchester in 1870, agreed upon by six operatives and six 
 employers. According to this code, there must be six 
 months' notice of any change, which is settled by concilia- 
 tion if possible ; if not, by reference to some arbitrator. At 
 Birmingham, Coventry, Leicester, and Nottingham, arbitra- 
 tion has also taken place in this branch of trade. 
 
 In the potteries a board of conciliation and arbitration 
 has been in existence since 1868 for the china and earthen 
 ware manufactories. The board is established on the 
 model of the Nottingham boards. " The President presides 
 over such meetings of the board as are not convened for the 
 purpose of arbitration ; but a standing referee presides over 
 all arbitrations by the board, and his decision is final in the 
 event of an equal vote." Mr. Crompton points out that the 
 advantage of this seems to be, that the referee is not called, 
 or arbitration attempted, until the board has failed to settle 
 by conciliation ; in which case there is to be one final 
 arbitration arrived at, if possible, without difference. The 
 award is made subject to a month's notice on either side. 
 The settlement of the prices of labor is, however, for a 
 year. 
 
 In the chemical trade of Northumberland and Durham, 
 a board of arbitration and conciliation was established in 
 1875 ; but it is of too recent formation for any results to be 
 reported. This board has a by-law especially directed 
 against strikes and lock-outs. 
 
 In the boot and shoe trade, no board of a formal 
 character has yet been established ; but a resolution has 
 been passed at Stafford in support of one in the future. At 
 Leicester, also, steps have been taken recently to form a 
 similar board.
 
 104 ARBITRATION. 
 
 In the woollen and worsted trades of Yorkshire, there 
 have been no boards of arbitration or conciliation, nor has 
 arbitration 'been resorted to as a means of settling disputes. 
 
 In the East Lancashire cotton trade, there is no system 
 of arbitration or conciliation ; but committees composed 
 of employers and employed are appointed from time to 
 time for the purpose of settling disputes, and they argue 
 the question till one side gives in. Mr. Birtwhistle, the 
 Secretary of the East Lancashire Amalgamated Weavers' 
 Association, is of the opinion they ultimately will have to 
 resort to arbitration. 
 
 In the printing trade, a court of arbitration was 
 established in 1853 ; but the court broke up because the 
 men, while accepting the award as a decision in an actual 
 dispute, refused to accept it as a decision binding in all 
 other cases arising out of past contracts, and involving 
 similar questions. 
 
 In the Typographical Trades Union, arbitration has 
 been suggested, but not yet adopted. 
 
 At Manchester, a question in dispute has been settled, 
 however, in conference between the masters and men in the 
 printing trade. 
 
 Among unskilled laborers, with the exception of the 
 laborers who are represented on the Birmingham board in 
 building trade, no settled form of arbitration has yet been 
 arranged ; and, until this large class is more thoroughly 
 organized within its own lines by union, such arbitration 
 will be difficult, if not indeed impossible. 
 
 Among agricultural laborers, into whose ranks the 
 spirit of organization is fast infusing itself, no arbitration 
 has yet taken place ; but Mr. Howard Evans, editor of The 
 English Lnborer, Mr. Crompton, and others, have written in 
 favor of the adoption of the system in future disputes.
 
 APPENDIX II. 
 
 SPECIMEN OF AN AMERICAN ARBITRATION 
 
 BOARD. 
 
 I give below the Constitution and By-Laws 
 of the Straiton & Storm Board of Arbitration. 
 It is the first systematic application of the 
 principle in this country. 
 
 ARTICLE I. 
 
 Section 1. The firm of Straiton & Storm and their 
 workmen herewith agree to organize a Board of Arbitration, 
 to whom shall be submitted all questions of wages and 
 such other matters as may be in dispute between employer 
 and employe. 
 
 ARTICLE II. 
 
 Sec. 1. The workmen of the firm of Straiton & Storm 
 shall elect at a regular annual meeting Forty delegates, as 
 hereinafter set forth. 
 
 Sec. 2. The Hand-ioorkmen shall elect fifteen delegates, 
 as follows : Four from the second floor ; Seven from the 
 third floor ; Four from the factory on Thirty-third street.
 
 10C> ARBITRATION. 
 
 Sec. o. The Rollers shall elect eleven delegates, as 
 follows: Four from the fourth floor; Four from the fifth 
 floor ; Three from the factory on Thirty-third street. 
 
 Sec. 4. The Bunch-makers shall elect seven delegates, 
 as follows : Three from the fourth floor ; Three from the 
 fifth floor ; One from the factory on Thirty-third street. 
 
 Sec. 5. The Packers shall elect seven delegates, as 
 follows : Four from the sixth floor ; One from the first 
 floor ; Two from the factory on Thirty-third street. 
 
 Sec. 6. Bunch-m<ikers, to be eligible as delegates, must 
 be twenty-one years of age. 
 
 Sec. 7. The annual election of delegates shall take 
 place on the last Monday in June. Nominations are to be 
 made one week before election. 
 
 Sec. 8. Should the number of delegates at any time 
 be less than ten, they shall elect by ballot and for the 
 unexpired term the whole number of delegates, as provided 
 for in Section 1, Article TI. 
 
 Sec. 9. Only such employes, who have been in the 
 employ of the firm six months previous to each election, 
 shall be eligible as delegates. 
 
 Sec. 10. Only such employes, who have been in the 
 emplo}' of the firm four weeks previous to the annual 
 election, shall have the right to vote for delegates. 
 
 ARTICLE III. 
 
 Sec. 1. One week after the annual election, the 
 delegates thereat, chosen by the different branches of 
 employes, shall meet se))arately, organize, and elect from 
 their rcsijective delegates their representatives in the Board 
 of Arljitration.
 
 ARBITRATION. 107 
 
 Sec. 2. The Board of Arbitration shall consist of 
 fourteen members, as follows : 
 
 Three Hand-workmen 3 
 
 Two Rollers 2 
 
 One Bunch-maker 1 
 
 One Packer 1 
 
 Two Members of the Firm 2 
 
 Five Foremen 5 
 
 Sec. 3. Immediately after the election of the repre- 
 sentatives of the workmen to the Board of Arbitration, the 
 same shall meet and organize by the election, through 
 ballot, of a President and Secretary. 
 
 Sec 4. At all the meetings of the Board of Arbitra- 
 tion, the firm of Straiton & Storm and its representatives 
 shall constitute part of the said Board, as specified and set 
 forth in Section 2, Article III. 
 
 Sec. 5. Should vacancies occur in the Board of 
 Arbitration, the delegates of the respective branches im- 
 mediately shall proceed to fill such vacancies as specified 
 and set forth in Section 1, Article III. 
 
 ARTICLE IV. 
 
 Sec. 1. The Board of Arbitration shall liear such 
 evidence as may appear to be necessary to a j)roper 
 understanding of the questions before the Board. 
 
 Sec. 2. All questions shall be decided by an open 
 vote. At any final vote, the names of the members of the 
 Board shall be called in alphabetical order, and the vote is 
 to be given in "Aye " or " Nay." 
 
 Sec 3. The decisions of a majority of the Board 
 of Arbitration shall be binding on all the parties concerned.
 
 108 ARBITRATION. 
 
 Sec. 4. All decisions affecting the interests of either 
 employers or employes must be htul in the presence of a 
 full Board. 
 
 Sec. 5. Whenever, at any meeting, a final vote is to be 
 taken on any main question, all the delegates of the 
 different branches shall be present at such meeting. 
 
 Sec. 6. If a member of the Board is absent at any 
 meeting whereat a final vote on any main (juestion is to be 
 taken, the place of the absent member shall immediately 
 be filled by the resjjective delegation. 
 
 Sec. 7. Whenever any question, on which a final vote 
 is to be taken, is properly before the board, meetings shall 
 be held daily until the said matter has been decided upon. 
 
 ARTICLE V. 
 
 Sec. 1. At a tie vote on any main question, and after 
 five ballots, each member of the Board, with the exception 
 of the President, shall name one person, who there and 
 then shall join the Board for the purpose of electing an 
 arbitrator. 
 
 Sec. 2. The workmen shall confine the selection of 
 said persons to the delegates of their respective branches. 
 
 Sec. 3. The firm shall confine the selection of said 
 persons to persons connected with the firm, either as 
 employers or employes. 
 
 Sec. 4. The arbitrator shall be selected by a majority 
 of the whole twenty-seven votes cast. 
 
 Sec. 5. Pending the election of the arl)itrator, motions 
 for recess or adjournment are not in order. 
 
 Sec. G. After the election of the arl>itrutor, the 
 functions of tlic tliirteen ])ersons chosen as temporary 
 members of the lioard, as speeiCicd ;iiid set fortli in the
 
 ARBITRATION. lUU 
 
 first, second, and third Sections, Article V., shall cease with 
 the final transactions of the businsss then before the Board. 
 
 AKTICLE VI. 
 
 Sec. 1. If the firm of Straiton & Storm, at any time, 
 should arrive at the conclusion that the Board of Arbitra- 
 tion no longer answers its purposes — namely, the fair and 
 equitable adjustment of all differences between their em- 
 ployes and themselves — then the firm shall give written 
 notice to the President and Secretary of the said Board 
 of Arbitration, as it is then constituted, of their unwilling- 
 ness to be bound by the decisions of the said Board. Three 
 months after such notification the functions of the Board 
 of Arbitration shall cease to be binding on either part3% 
 and the said Board shall be abolished. 
 
 Sec. 2. If the employes of Straiton & Storm, who are 
 governed by the decisions of the Board of Arbitration, at 
 any time, should arrive at the conclusion that the said 
 Board no longer answers its pur}»oses as specified in Section 
 1, Article VI., and a petition be presented to the firm with 
 the signatures of one-third of such employes thereto at- 
 tached, demanding the abolition of the said Board of 
 Arbitration, then the employes governed by said Board 
 shall vote upon the question ; if it should appear that 
 two-thirds of their number favor the abolition of the said 
 Board of Arbitration, it shall, at the expiration of three 
 months, cease to exist, and all things pertaining thereto 
 shall be null and void.
 
 110 ARBITRATION. 
 
 BV=LAWS 
 
 ARTICLE I. 
 
 Section 1. It shall be the duty of the President to 
 preside at all meetings, preserve order, and decide all points 
 of parliamentary law. 
 
 Sec. 2. Whenever requested by a majority of the men 
 interested, the Secretary shall notify each member of the 
 Board of Arbitration of the time and place of a meeting 
 of said Board to be held within three days of the date of 
 such request. 
 
 Sec 3. The meetings shall be called to order within 
 fifteen minutes of the appointed time. 
 
 Sec 4. Seven members shall constitute a quorum for 
 the transaction of all business, except the casting of a final 
 vote on any main question. 
 
 ARTICLE II. 
 
 Sec 1. One of every ffty employes shall have the 
 privilege to appear before the Board of Arbitration to 
 represent their case, but such representation shall never be 
 less than three. 
 
 Sec 2. Such representatives may present their views 
 in writing or otherwise. 
 
 Sec 3. If verbal, they shall confine their remarks to 
 the subject then before the Board, and they shall not 
 occupy more than fifteen minutes.
 
 ARBITRATION. Ill 
 
 Sec. 4. In no case shall these representatives enter 
 into any other discussion than a plain statement of their 
 case. The representatives shall be bound to answer all 
 such questions as the members of the Board may lay before 
 them. 
 
 Sec. 5. Such representatives shall not be members 
 of the Board of Arbitration or of the delegations con- 
 stituting the same. 
 
 Approved at a meeting of the Board of Arbitration. 
 
 May 31, 1884.
 
 APPENDIX III 
 
 A BUNDLE OF LETTERS ON THE SUBJECT. 
 
 The following letters contain expressions on 
 arbitration in trade disputes, and were addressed 
 to the writer in the winter of 1884. Some of 
 them are from leading officers in prominent labor 
 organizations, and others are expressive of the 
 experience and observation of that system. 
 
 A. Strasser, President of the Cigar Makers' 
 International Union of America, Avrites from 
 New York City as follows: 
 
 1. Tlie intelligent members of our organization favor 
 arbitration without an exception, because it is a means 
 of ))reventing hasty and impulsive strikes. 
 
 2. Arbitration is always preferable to a strike or 
 lock-out ; but it depends on the consent of both parties. 
 In Cincinnati, where our members are locked out, since 
 March 8, 1884, the manufacturers have refused to arbitrate, 
 even declined to come to a conference.
 
 ARBITRATION. 113 
 
 3. We have no regular system of arbitration in force, 
 hut the majority of the unions practice the same on all 
 occasions. 
 
 4. The best method of jiaving the way for arbitration 
 is the legislation of trades unions by State and nation, 
 which will strengthen the labor organizations. 
 
 Yours very respectfully, 
 
 A. STRASSER, President. 
 
 The Grand International Brotherhood of Loco- 
 motive Engineers, through one of its chief 
 officers, replied: 
 
 * * * Your letter asking for my opinion concerning 
 the settling of disputes between capital and labor by 
 arbitration is received, and in reply will say that I regard it 
 as the best and most just method of adjusting all differ- 
 ences that arise between employers and employes. As to 
 our organization, we favor it, and are ready at all times to 
 submit our differences, that we cannot settle, to a board 
 of arbitration ; and I believe the intelligent workmen 
 of the country are a unit in favor of arbitration in 
 l)reference to strikes. Yours truly, 
 
 P. M. ARTHUR, G. C. E. 
 
 Robert Howard, Secretary of the Spinners' 
 Union of Fall River, Mass., and one of the 
 Loirislative Committee of the Federation of 
 Organized Trades and Labor Unions of the 
 United States and Canada, writes:
 
 114 ARBITRATION. 
 
 * * * I am entirely opposed to comjiulsory 
 
 arbitration by our courts. I think such a course woulil act 
 detrimentally to the interest of labor. The courts are too 
 corrupt, and would invariably decide in favor of capital. I 
 find it so in this vicinity. * * * Arbitration I ai)prove 
 of when voluntary between employers and employes. I 
 firmly believe that if such boards were formed for the 
 purpose of conciliation and arbitration in the event of 
 disputes, 90 per cent, of them would be settled by concilia- 
 tion, rendering arbitration unnecessary. 
 
 I am very much in favor of voluntary boards of 
 arbitration. Respectfully, 
 
 ROBERT HOWARD, 
 
 Sec. Spinners^ Union. 
 
 The practical operations of the " Wallace Act" 
 of Pennsylvania is given in the two following 
 letters. One is from an operator and capitalist 
 who served on the Coal Trade Tribunal of Arbi- 
 tration in the Fifth District of Pennsylvania; the 
 other is from John Flannery, a representative 
 of a labor organization, and also a member of the 
 same tribunal. 
 
 William A. Mcintosh, the operator member, 
 writes : 
 
 The Coal Trade Tribunal of the Fifth Judicial District 
 of Pennsylvania was licensed under the Wallace Act, on 
 the 19th of May, 1883, and consisted of five representatives 
 (jf miners, five representatives of operators, and an umpire
 
 ARBITRATION. 115 
 
 previously chosen by the other members of the Tribunal, 
 and being, as required by the act, their unanimous choice. 
 
 The creation of this Tribunal was during a strike, the 
 operators offering three cents per bushel for mining, and 
 the miners demanding three and a half cents. 
 
 After several lengthy discussions it became apparent 
 that an agreement could not be arrived at without con- 
 siderable delay ; and, as an earnest of good intentions, it 
 was ordered that the miners resume work immediately, at a 
 price to be thereafter fixed by the Tribunal, the price to 
 date back to the time of the resumption of work. 
 
 Work was generally resumed without delay. Com- 
 mittees, consisting of an ecjual number of each side, were 
 appointed to gather such statistics as might have a bearing 
 on the question of prices of mining. These committees 
 reported at a meeting held June 11, the reports being 
 epitomes of information obtained by the committees, and 
 showing average cost of production and selling price 
 of coal during the three years immediately preceding. 
 
 Several meetings of the Tribunal were held ; but, 
 failing to agree upon a price to be paid for mining, it was 
 decided that the umpire be called in. The question in 
 dispute was submitted to him ; and, after hearing the 
 arguments of both sides, he made his award; viz., that the 
 price to be paid for mining should be three and a quarter 
 cents per bushel. 
 
 This award, while apparently a disappointment to both 
 sides, was accepted and concurred in during the time it was 
 intended to cover; viz., until October 1, 1883. 
 
 In September following, this Tribunal met for the 
 purpose of fixing upon the price to be paid for mining from 
 October 1, 1883, to April 1, 1884, the operators offering three
 
 116 ARBITRATION. 
 
 and a quarter cents and the miners demanding three and 
 three-quarter cents per bushel. 
 
 Being unable to agree, the services of the unii)ire were 
 requested. After hearing the arguments on both sides, the 
 umpire made his award ; viz., that the price of mining 
 should be three and a half cents per bushel. This award 
 did not appear to be satisfactory to all, but was accepted. 
 
 In March of 1884, several meetings of the Tribunal 
 were held to fix upon the price to be paid for mining from 
 April 1, 1884, till October 1, 1884, resulting in the adoption 
 of the rate of three cents per bushel, without the aid of the 
 umpire. To many miners this action was unsatisfactory, 
 although the price was generally accepted ; and when the 
 new Tribunal was created, not one of the miners' representa- 
 tives on the^ first Tribunal was selected to serve on the 
 second. 
 
 This ended the work of the first Tribunal ; and, while 
 there were many hard word tilts between miner and 
 operator, I believe all were actuated with a sincere desire to 
 do equal justice, and that which would result in the mutual 
 good of all concerned. While the awards of the Tribunal 
 were not entirely satisfactory to both sides, as indeed it is 
 hardly to be expected that they always will be, I believe the 
 interests of both miners and operators were promoted, as 
 strikes and lock-outs were avoided, and this is, frequently, 
 of more importance than the matter of a small difference in 
 price of mining. 
 
 In conse(iuence of unavoidable delays, the present 
 Tribunal was not licensed until October 4, 1884, four of the 
 operators' representatives on the first Tribunal being chosen 
 on the second, but none of the former representatives of the
 
 ARBITRATION. 117 
 
 The present Tribunal has decided that the price of 
 mining in effect prior to October 1, 1884, shall continue 
 indefinitely, and that the Tribunal shall meet for the pur- 
 pose of considering the question of price of mining when- 
 ever three or more members signify that to be their wish. 
 
 Having- been connected with all efforts here to settle 
 differences between employers and employes in the coal 
 trade, by arbitration, I would call your attention to one 
 very valuable provision of the Wallace Act, one which I 
 regard as essential to success ; viz., the provision that the 
 umpire shall be chosen before any other steps are taken, 
 except the choosing of the members of the tribunal proper. 
 
 In all previous attempts at arbitration in the coal 
 trade, the plan has been to choose the representatives of the 
 two sides, who, if they could not agree regarding the point 
 at issue, were to choose the umpire to decide. 
 
 The result in every case has been that the arbitrators 
 failed to agree, and such a spirit of distrust was engendered 
 that they would not agree upon an umpire ; hence failure. 
 
 In order to insure success it is also necessary that all 
 arbitrators should be fully empowered to do what they may 
 deem best for all concerned without the fear of the dis- 
 pleasure of those they represent, in case the conclusions 
 arrived at should not be in full harmony with the ideas 
 of their constituents. 
 
 I have an abiding faith that arbitration will grow to be 
 the popular method of settling disputes between capital 
 and labor; and that while each unsuccessful attempt may 
 render the next attempt more diflicult, it will also serve 
 to bring to light the obstacles in the way, which being 
 discerned will be the more readily overcome. 
 Yours truly, 
 
 WM. A. McINTOSH.
 
 118 ARBITRATION. 
 
 John Flanneiy, Secretary of the Miners' 
 Union, under date of December 22, 1884, says: 
 
 In reply to yours of the ISth inst., on arbitration, its 
 work, etc., I can say that it has operated here in accordance 
 witli the act of 1883 known as the "Voluntary Trade 
 Tribunal Act," and has done more good during the last 
 twenty months for the railroad miners and operators than it 
 gets credit for doing. There has been no strikes, where 
 there used to be every summer, lasting from two to five 
 months. There has been no "exiles" made by being 
 "victimized" for taking active parts in strikes to keej) 
 wages up. The trade, though dull this year, has sutrored 
 none through uncertainty, and contracts have been kept 
 that properly belong to this district. 
 
 If justice were done to arbitration, which only can l)e 
 where there is strong and systematic organization on both 
 sides, it would soon become a subject for national legisla- 
 tion. I would favor a system that would make awards be 
 enforced, instead of voluntary, but I have the name of an 
 extremist in my advocacy of that system. 
 
 The one great drawback is that any one-horse employer 
 may break the price awarded, and peaceable and fair 
 employers must follow suit, or suffer to be underbid in the 
 market and lose contracts, to the gain of the adventurer 
 and foe of peace and honesty in labor matters. 
 
 Too much cannot be said favorable to this grand system 
 when put into pro})er shape. If one could spare time to 
 give you the figures to show the thousands sacrificed by 
 capital to subjugate labor, and the fabulous amount lost by
 
 ARBITRATION. 119 
 
 labor to outfight capital, not to speak of the suffering 
 of innocent souls by hunger and cold, it would surprise 
 you, just for this district alone. Then, what is gained? 
 There is no principle established to benefit trade or 
 humanity ; and the justice of the result established by a 
 strike is always questionable, because it is might against 
 right, with merit and justness left out of the controversy. 
 
 The great object is to enforce the awards, which cannot 
 be done without a strong and well disciplined organization 
 among workmen, and the same of employers, who go in to 
 do right and to sit down summarily on wrong doing. An 
 efficient agency established by national or State law, is the 
 great requisite of the day to aid in this work, to raise 
 humanity out of the slough of strikes. * * * * 
 Yours truly, 
 
 JOHN FLANNERY.
 
 APPENDIX IV. 
 
 THE OHIO ARBITRATION ACT. 
 
 The Constitution of Ohio confers power upon 
 the Legishiture to establish courts of arbitration 
 and conciliation, but they must be voluntary 
 tribunals. Section 19, Article IV., says: 
 
 The General Assembly may establish courts of con- 
 ciliation, and prescribe their powers and duties ; but such 
 courts shall not render final judgment in any case, excei)t 
 upon submission, by the parties, of the matter in dispute, 
 and their agreement to abide such judgment. 
 
 The following is now the law in Ohio on this 
 
 subject: 
 
 AN ACT 
 
 To antliorize the creation and to provide for the operation of 
 tribunals of vohintary arbitration to adjust in(histrial (hspntes 
 between employers and employed. 
 
 Section 1. Be it enacted by the General Assembly of the 
 State of Ohio, That the Court of Common Pleas of each 
 county or a .Judge thereof in vacation, sliall liavc th(> {)ower, 
 and upon the presentation of the petition, or of the agree-
 
 ARBITRATION. 121 
 
 ment horeinafter named, it shall be the duty of said court, 
 or a Judge thereof in vacation, to issue in the form herein- 
 after named, a license or authority for the establishment 
 within and for each county of tribunals for voluntary 
 arbitration and settlement of trade disputes between 
 employers and employed in the manufacturing, mechanical, 
 or mining industries. 
 
 Sec. 2. The said petition or agreement shall be sub- 
 stantially in the form hereinafter given, and the petition 
 shall be signed by at least forty persons employed as 
 workmen and by four or more separate firms, individuals, 
 or corporations within the county, or by at least four 
 employers, each of whom shall employ at least ten work- 
 men, or by the representative of a firm, corporation, or 
 individual employing not less than forty men in their trade 
 or industry, provided, that at the time the petition is 
 presented, the Judge Ijefore whom said petition is presented, 
 may, upon motion, require testimony to be taken as to the 
 representative character of said petitioners, and if it 
 appears that the said petitioners do not represent the will 
 of a majority, or at least one-half of each party to the 
 dispute, the license for the establishment of the said 
 tribunal may be denied, or may make such other order in 
 this behalf, as to him shall seem fair to both sides. 
 
 Sec. 3. If the said petition shall be signed by the 
 requisite number of both employers and workmen, and be 
 in proper form and contain the names of the persons to 
 compose the tribunal, being an equal number of employers 
 and workmen, the Judge shall forthwith cause to be issued 
 a license substantially in the form hereinafter given, author- 
 izing the existence of such tribunal and fixing the time and 
 place of the first meeting thereof, and an entry of the 
 license so granted shall be made upon the journal <>f tlie
 
 1 22 ARBITRATION. 
 
 Court of Common Pleas of tlie county in which the petition 
 originated. 
 
 Sec. 4. Said tribunal shall continue in existence for 
 one 3'ear from the date of the license creating it, and may 
 take jurisdiction of any disjnite between employers and 
 workmen in any mechanical, manufacturing, or mining 
 industry or business, who shall have petitioned for the 
 tribunal, or have been represented in the petition therefor, 
 or may submit their disputes in writing to such tribunal for 
 decision. Vacancies occurring in the membership of the 
 tribunal shall be filled by the Judge or court that licensed 
 said tribunal, from three names presented by the members 
 of the tribunal remaining of that class in which the 
 vacancies occur. The removal of any member to an 
 adjoining count}^ shall not cause a vacancy in either the 
 tribunal or the post of umpire. Disputes occurring in one 
 county may be referred to a tribunal already existing in an 
 adjoining county. The place of umpire in any of said 
 tribunals and vacancies occurring in such place, shall only 
 be filled by the mutual choice of the whole of the re]>re- 
 sentatives, of both employers and workmen constituting 
 the tribunal, immediately upon the organization of the 
 same. The umpire shall be called upon to act after dis- 
 agreement is manifested in the tribunal by failure during 
 three meetings held and full discussion had. His award 
 shall be final and conclusive ui)on such matters only as are 
 submitted to him in writing and signed by the whole of the 
 members of the tribunal, or Ity parties submitting the 
 same. 
 
 Sec. 5. The said tribunal shall consist of not less than 
 two employers or their rei)resentatives, and two worknien. 
 The exact number, which shall in each case constitute the 
 tribunal, shall be inserted in the petition or agreement, and
 
 ARBITRATION. 1 23 
 
 they shall be named in the license issued. The said 
 tribunal, when convened, shall be organized by the selection 
 of one of their number as chairman and one as secretary, 
 who shall be chosen by a majority of the members, or 
 if such majority cannot be had after two votes, then by 
 secret ballot, or by lot, as they prefer. 
 
 Sec. 6. The members of the tribunal shall receive no 
 compensation for their services from the city or county, but 
 the expenses of the tribunal, other than fuel, light, and the 
 use of the room and furniture, may be paid by voluntary 
 subscription, which the tribunal is authorized to receive 
 and expend for such purposes. The sessions of said 
 tribunal shall be held at the county seat of the county 
 where the petition for the same was presented, and a room 
 in the Court House for the use of said tribunal, shall be 
 provided by the County Commissioners. 
 
 Sec. 7. When no umpire is acting, the Chairman 
 of the tribunal shall have power to administer oaths to all 
 witnesses who may be produced, and a majority of said 
 tribunal may provide for the examination and investigation 
 of books, documents, and accounts pertaining to the 
 matters in hearing before the tribunal, and belonging to 
 either party to the dispute ; provided, that the tribunal may 
 unanimously direct that instead of producing books, 
 papers, and accounts before the tribunal, an accountant 
 agreed upon by the entire tribunal, may be appointed to 
 examine such books, papers, and accounts, and sucli ac- 
 countant shall be sworn to well and truly examine such 
 books, documents, and accounts as may be presented to 
 him, and to report the results of such examination in 
 writing to said tribunal. Before such examination the 
 information desired and required by the tribunal shall be 
 plainly stated in writing and presented to said accountant,
 
 124 ARBITRATION. 
 
 which statement shall be signed by the members of said 
 tribunal, or by a majority of each class thereof. Attorneys 
 at law or other agents of either ))arty to the dispute, shall 
 not be permitted to appear or take part in any of the 
 proceedings of the tribunal, or before the umpire. 
 
 Sec. 8. When the uminre is acting he shall preside, 
 and he shall have all the powers of the Chairman of the 
 tribunal ; and his determination upon all questions of 
 evidence, or other questions, in conducting the inquiries 
 then pending, shall be final. Committees of the tribunal 
 consisting of an equal number of each class may be 
 constituted to examine into any question in dispute be- 
 tween employers and workmen which may have been 
 referred to said committee by the tribunal, and such com- 
 mittee may hear and settle the same finally, when it can be 
 done, by a unanimous vote ; otherwise the same shall be 
 reported to the full tribunal, and there be heard, as if the 
 question had not been referred. The said tribunal, in 
 connection with the umpire, shall have power to make, 
 ordain, and enforce rules for the government of the body 
 when in session, to enable the business to be proceeded with 
 in order, and to fix its sessions and adjournments ; but such 
 rules shall not conflict with this statute, nor with any 
 of the provisions of the Constitution and laws of Ohio. 
 
 Sec. 9. Before the umpire shall proceed to act, the 
 question or questions in dispute shall be plainly defined in 
 writing, and signed by the members of the tribunal, or a 
 majority thereof of each class, or by the parties submitting 
 the same ; and such writing shall contain the submission 
 of the decision thereof to the umpire by name, and shall 
 provide that his decision thereon, after hearing, shall be 
 final. The umpire shall be sworn to impartially decide all 
 questions that may be submitted to him during his term
 
 ARBITRATION. 
 
 125 
 
 of office. The submission and his award may be made in 
 the form hereinafter given, and said umpire must make his 
 award within ten days from the time the ([Uestion or 
 questions in dispute are submitted to him. Said award 
 shall be made to the tribunal ; and if the award is for a 
 specific sum of money, said award ma}' be made a matter 
 of record by filing a copy thereof in the Court of Common 
 Pleas of the county wherein the tribunal is in session. 
 When so entered of record it shall be final and conclusive, 
 and the proper court may, on motion of any one interested, 
 enter judgment thereon ; and when the award is for a 
 specific sum of money, may issue final and other process to 
 enforce the same. 
 
 Sec. 10. 'The form of the joint petition or agreement 
 pra3ang for a tribunal under this act shall be as follows : 
 
 To the Court of Common Pleas of County {or to a 
 
 Judge thereof, as the case may be): 
 
 The subscribers hereto, being the number and having 
 the (jualifications required in this proceeding, being desirous 
 of establishing a tribunal of voluntary arbitration for the 
 
 settlement of disputes in the (here name the 
 
 branch of industiy) trade, and having agreed upon A, B, C, 
 D and E, representing the employers, and G, H, I, J and K, 
 representing the workmen, as members of said tribunal, 
 who each are qualified to act thereon, pray that a license for 
 
 a tribunal in the trade may be issued to said 
 
 persons named above. 
 
 EMPLOYERS. 
 
 RESIDENCE. 
 
 Nl^.MBER 
 E.MYF.OVES.
 
 126 
 
 ARBITRATION. 
 
 EMPLOYES. 
 
 NAMES. 
 
 KESIUENCE. 
 
 BV WHOM EMPLOYED. 
 
 Sec. 11. The license to be issued upon such petition, 
 may be as follows : 
 
 State of Ohio, } 
 County, 
 
 - ss. 
 
 Whereas, The joint petition and agreement of four 
 employers (or representatives of a firm, corporation, or indi- 
 vidual, employing forty men, as the case may be), and forty 
 workmen has been presented to this court, (or if to a judge 
 in vacation, so state), praying the creation of a tribunal 
 of voluntary arbitration for the settlement of disputes in 
 
 the trade within this county, and naming A, B, 
 
 C, D, and E, representing the employers, and G, H, I, J, 
 and K, representing the workmen. Now, in pursuance 
 of the statute for such case made and provided, said named 
 persons are hereby licensed and authorized to be and exist 
 as a tribunal of voluntary arbitration for the settlement 
 of disputes between employers and workmen for the period 
 of one year from this date, and they shall meet and organize 
 on the .... day of , A. D at 
 
 Signed, this .... day of , A. D 
 
 [ Signature. ] , 
 
 Clerk of the Court of Common Pleas of . . . County. 
 
 Sec. 12. When the tribunal agrees to submit a matter 
 in controversy to the umpire, it may be in form as follows: 
 
 We, A, B, C, I), and K, representing employers, and G, 
 H, I, .J, and K, representing workmen, composing a tri])unal
 
 ARBITRATION. 1 27 
 
 of voluntary arbitration, hereby submit and refer unto the 
 
 umpirage of L. (the umpire of the tribunal of the trade,) 
 
 the following subject-matter, namely : [Here state fully and 
 clearly the mutter submitted.] And we hereby agree that his 
 decision and determination upon the same shall be binding 
 upon us, and final and conclusive upon the question thus 
 submitted ; and we pledge ourselves to abide by and carry 
 out the decision of the umpire when made. 
 
 Witness our names this .... day of , A. D 
 
 [ Signatures. ] 
 
 Sec. 13. The umpire shall make his award in writing 
 to the tribunal, stating distinctly his decisions on the 
 subject-matter submitted. And when the award is for a 
 specific sum of money, the umpire shall forward a copy 
 of the same to the clerk of the proper court. 
 
 Sec. 14. This act shall be in force from and after its 
 passage.
 
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